Bailouts, Deficits, and Printing: Who Pays?
7 min readarticleIncludes quiz · 3 questions
Bailouts are like covering a friend's dinner bill. You can: 1) Pay cash (taxes), 2) Put it on a credit card (borrow), or 3) Print Monopoly money (inflate). None are free - someone always pays the real bill eventually.
Paths to pay for bailouts:
- •Taxes now: Visible cost today.
- •Borrowing: Taxes later + interest.
- •Printing: Hidden cost via devaluation/inflation.
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