Recycling Money

Published on February 26, 2024 by Premium

A structurally large fiscal footprint is a strong tailwind for credit as it is likely to keep nominal GDP growth elevated for the foreseeable future. Fiscal spending recycles money by taking from those who are less likely to spend and giving to those who are more likely to spend. In practice, the Federal government is largely funded by a small fraction of high income earners and increasingly from wealthy investors. The recipients of its expenditures […]

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