The federal government, though, also has real assets: interstate highways, public buildings, and federal land, water, and minerals.
How can you count interstate highways as an asset? How would you monetize the interstate highway system? Sell them to a private enterprise or a foreign government? Aren't these part of our homeland security infrastructure?
After the citizens paid for these highways (taxes), the government can sell it to someone who will charge us tolls?
Things owned by the government are really owned by the citizens. A larger debt may have the effect of forcing the citizens to sell off their assets. When selling off federal land, water and minerals I hope we are getting a decent deal otherwise the effect is that in a tight spot we are transferring wealth from the people to private enterprise. By people I mean ordinary tax payers.
But if it wishes, the federal government can always create what money it needs to service its debt. In this fundamental sense, then, federal debt is different from private debt or, for that matter, the debt of state and local governments, which do not have the power to create money.
Wow! If all else fails just print money. If this is true why do we have to pay any taxes at all? Every year the government can estimate the total costs and print additional money to cover it. If that's not a bad thing let's do it!
ps: Sorry about the spelling... I don't have a spell checker on this machine.... |
