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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]

And most households don’t have bonds that every international investor usually wants to hold. If households could borrow a lot of cheap money, they probably would. The problem is that Trump is scaring everyone off and the investors want higher interest rates. [/quote]

This is another way the analogy breaks down.  Carried interest doesn't work for the US government.  EG if we have a low interest loan, we can't invest in a high return investment and make money.  EG we can't use excess from student loans or thirty-year mortgages to take out high yield CDs or put it in a 401K and make money on the cheap loans.  There is no net benefit to cheap loans for the government.  It's just throwing money down the drain.[/quote]

The arguement from the borrow cheap money crowd is that the government can invest in things that build productivity - education, infrastructure etc.. of course Congress is not disciplined and you just end up with more spending on everything.

But a huge reason we have $37 trillion in debt is tied to the very low interest rates we’ve enjoyed because of safety US securities.  [/quote]

And education is nominally beneficial, definitely not enough to get people in a high enough tax bracket to recoup the costs.  Businesses might make more money, but they have nominal tax rates, barely accounting for 7% of the total income.  Most people can barely pay off the loans.  Then they bring a bunch of poor people or skilled immigrants, not paying taxes but using services.  The "skilled" immigrants in most cases do the "skilled" work for less wages so actually make the income investment worse.  I could see if people came out of college with high earning degrees, but most of the people that the government invests in don't command all that great of a wage after matriculating, eg poor people are still poor after they have degrees.[/quote]

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