Imagine your friend, Sam, who loves buying treats but only earns enough for the basics. Sam discovers a magical credit card that lets him buy now and pay later. This is like when governments spend more money than they have, called #DeficitSpending.
At first, it's great for Sam because he gets all the goodies without immediate consequences. Similarly, politicians love #DeficitSpending because it makes them popular by funding projects and giving out benefits without raising taxes.
But here's the catch: the magical credit card charges interest. Over time, Sam's debt grows so big that most of his earnings go just to cover the interest, not even the treats or basics. For countries, this growing debt from #DeficitSpending means more money spent on interest, less on important stuff like education or healthcare.
Politicians focus on short-term wins because they're often more concerned with the next election than the long-term health of the economy. Changing this habit is tough because immediate benefits are tempting, and the consequences of #DeficitSpending feel far away.
Just like Sam, countries find it hard to resist the allure of the magical credit card. But unlike Sam, they can't declare bankruptcy; they have to deal with the consequences eventually. That's why relying too much on #DeficitSpending is a risky game with the future.
#Wbtm orangepillapp (npub1ve8…9ka6)
WBTM / WHAT BITCOIN TAUGHT ME ⚡️
npub1ja…tzrsl
2024-07-06 16:06:38
Author Public Key
npub1japy2cjly7e9hgzcxnaqul6ppmyskrvww63dxsxvyfqsjg90yxmsvtzrslPublished at
2024-07-06 16:06:38Event JSON
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"content": "Imagine your friend, Sam, who loves buying treats but only earns enough for the basics. Sam discovers a magical credit card that lets him buy now and pay later. This is like when governments spend more money than they have, called #DeficitSpending. \n\nAt first, it's great for Sam because he gets all the goodies without immediate consequences. Similarly, politicians love #DeficitSpending because it makes them popular by funding projects and giving out benefits without raising taxes. \n\nBut here's the catch: the magical credit card charges interest. Over time, Sam's debt grows so big that most of his earnings go just to cover the interest, not even the treats or basics. For countries, this growing debt from #DeficitSpending means more money spent on interest, less on important stuff like education or healthcare. \n\nPoliticians focus on short-term wins because they're often more concerned with the next election than the long-term health of the economy. Changing this habit is tough because immediate benefits are tempting, and the consequences of #DeficitSpending feel far away. \n\nJust like Sam, countries find it hard to resist the allure of the magical credit card. But unlike Sam, they can't declare bankruptcy; they have to deal with the consequences eventually. That's why relying too much on #DeficitSpending is a risky game with the future.\n\n#Wbtm #[0]",
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