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The dominant source of resources for governments at the moment is government debt. In the US, total federal debt equaled more than 135% of GDP
The dominant source of resources for governments at the moment is government debt. In the US, total federal debt equaled more than 135% of GDP in early 2020. That means that if the federal government confiscated the economy's entire amount of output and used it to pay for their outstanding borrowing, they would still fall far short of paying off their IOUs. Note that this only includes federal debt - it does not include state-level or city-level debt. What do you think this implies for future tax revenues (potentially including seignorage taxes)? How might the burden of this debt be distributed across people now and into the future
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