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Why government debt is not like household borrowing


Why government debt is not like household borrowing - The Guardian

How do governments borrow? A government has an income, mainly from tax receipts, but unlike a household, it can raise many billions of pounds ...

Government finances are not like those of any household

So, the government is nothing like a household precisely because it has this legal power to create money and to tax. Now let's also talk about ...

Government-Household analogy - Wikipedia

The analogy has been characterized by economists as misleading and false, as the functions and constraints of governments and households are vastly dissimilar.

The Government Is Not a Household: A Long-Term Perspective on a ...

Deeper consideration, however, exposes the metaphor as misleading. To highlight but two of the crucial differences between the indebtedness of a household and ...

A Government is not a household - Positive Money

The household analogy is simple: the government needs to live within its means. Like a typical household, if the government consistently spends more than it ...

Governments Are Nothing Like Households - Forbes

Politicians like to describe government as like a household. When you've borrowed too much, you cut your spending so you can pay off debt, ...

Why comparing federal and household budgets doesn't work

Another reason the national debt doesn't work like credit card debt has to do with the government's immense financial power compared to that of ...

Why can governments borrow so much money? | Nerds on Money

... like governments, they'd be bankrupt. That's true, but it ignores fundamental differences between household and government debt. There are ...

Some Simple Facts about U.S. Government Debt | Cato at Liberty Blog

Economic researchers have found that countries that borrow as much as the U.S. government do experience negative effects, such as lower economic ...

[Econ]Why is comparing sovereign debt to household debt wrong?

That's the basic reason that the government is not a household and why government debt is not like household debt. When times are bad, and the ...

Why the National Debt Matters for Housing | Bipartisan Policy Center

The Risks of Growing Public Debt · Elevated interest rates as increasing federal borrowing crowds out private investments that would otherwise ...

U.S. debt dilemma: No quick fixes and no catastrophes

What's odd to us, though, is the laser-like focus on the federal government's borrowing. After all, most economic activity in the U.S. takes ...

Understanding the National Debt | U.S. Treasury Fiscal Data

The national debt is the accumulation of this borrowing along with associated interest owed to the investors who purchased these securities. As the federal ...

How worried should you be about the federal deficit and debt?

The debt is the total the U.S. government owes—the sums it borrowed to cover last year's deficit and all the deficits in years past. Each day that the ...

Why is the comparison of the US government debt and household ...

Because households borrow in dollars. The government is the issuer of dollars. But it's much more complex than that. Households take out loans.

When Does Federal Debt Reach Unsustainable Levels?

Larger ratios in countries like Japan, for example, are not relevant ... household saving rate, which more-than absorbs the larger government debt ...

What the National Debt Means to You - Investopedia

Government borrowing invested to increase the economy's productive potential might produce returns far exceeding the borrowing costs or they might not. What ...

The Guardian on X: "Why government debt is not like household ...

Why government debt is not like household borrowing https://t.co/R6Yh8obzcT.

The Federal Government Has Borrowed Trillions. Who Owns All that ...

Of that amount, about $27 trillion, or 79 percent, was debt held by the public — representing cash borrowed from domestic and foreign investors.

The U.S. National Debt Dilemma | Council on Foreign Relations

Many economists say that a rapidly mounting debt load could soon diminish U.S. economic growth, restrict government spending on important ...