Economy / Politics

Getting Rid of Government Debts – Part 2

Embassy of the Future

In the previous article, Getting Rid of Government Debt – Part 1, I have introduced a distinction between two types of public debts. One type is debts backed by assets. This part of the debts can be paid back by asset backed money generation, as described in that article. It can be passed to the next generation together with the assets corresponding to it.

In the present article, however, I am going to look at the other part of the public debts. What should we do with the parts of the public debts not backed by assets? The existence of such debts means that money was spent for things other than lasting assets, i.e. it was consumed but taxes where not high enough to cover this spending. Passing such debts to the next generation is exploitative because future people would just inherit the debts without being compensated by also inheriting…

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