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Amazing how as recently as 2008 the $750 billion bank bailout was unpresented, and now $500 billion is an afterthought. goes to show how much bigger the economy is and how these fears of debt are mostly hot air or unacted on. The people who have predicted debt collapse for the past 20+ years keep being wrong.
If we’re talking about the same $500 billion that Softbank announced on Monday, that is not federal money.
That is the amount of money Softbank promises to find—somewhere—to begin spending sometime during Trump’s administration. Trump invited them to make the announcement in the White House as a favor to Trump and to invite favorable confusion about Trump’s role in the initiative.
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There are no fears of the debt. There are fears of the GDP to debt ratio though. And the massive fixed payments of the federal government that will grow even faster than the economy.
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As a baseline, the us military budget in FY 2023 was 820G$. So projects of this size are neither trivial nor something which will take generations to pay the debts for.
However, I think your comparison is apples to oranges.
In the one case, we had a system of companies which had not had adequate risk management, instead trying to become 'too big to fail', at which point the US gov would have to bail them out or risk economic collapse.
In the other case, we have the US gov spending (wisely or foolishly, I am open to arguments) in the hope of gaining future benefits.
In short, it is the difference between giving your kid 100k$ for opioids to prevent them from going into withdrawal versus giving them 100k$ to spend towards getting an engineering degree. The amount of money might be similar, but the incentives it sets and the likely long term outcome are very different.
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Wrong until they are right. The Turkey is most comfortable until the day before thanksgiving
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