The Deficit Is Exploding! And That’s a Good Thing.

The Deficit Is Exploding! And That’s a Good Thing.
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US Treasury Department. (Graeme Sloan / Sipa via AP Images) One huge question about the stimulus package that nobody seems to be asking is: Where does the money come from to pay for it?

The bill is the largest fiscal stimulus program in US history, with a budget totaling roughly $2 trillion, equal to about 10 percent of the gross domestic product—the market value of all goods and services the country produces. The reason nobody seems to be asking where the money will come from is that the correct answer is evident: The federal government will borrow it by issuing US Treasury bonds.

Unlike any other government or private entity in the world, the US government has the capacity to borrow at will over the course of the recession. The government will also be able to manage the enormous increase in […]

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