Article 6D3JV How Loan Forgiveness Hurts Taxpayers

How Loan Forgiveness Hurts Taxpayers

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from from FEE on (#6D3JV)

So long as the government has the borrower pay back their loans, they shouldn't cause inflation. But what if the borrower does not pay them back, or the government provides an unrealistically low payment or interest rate? In that case, the government is going to have to pay back the bondholder by taking on more debt, increasing tax revenue, or printing more money.

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