Who Pays For This? · by Morgan Housel – Collaborative Fund

 by Morgan Housel

“The federal government will run a $3.8 trillion deficit this year and $2.1 trillion next year.

Those estimates, from a budget-focused think tank, don’t include what’s almost certain to be another multi-trillion-dollar stimulus package or two, or three, in the near future.

We’re all just guessing, but when this is all over – however you want to define that – it would not surprise me if the direct federal cost of Covid-19 is something north of $10 trillion.

I’ve heard many people ask recently, “How are we going to pay for that?”

With debt, of course. Enormous, hard-to-fathom, piles of debt.

But the question is really asking, “How will we get out from underneath that debt?”

How do we pay it off?

Three things are important here:

  1. We won’t ever pay it off.
  2. That’s fine.
  3. We’re lucky to have a fascinating history of how this works.”

Source: Who Pays For This? · Collaborative Fund

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