There is a close relationship between government public debt and inflation, which is almost constant. The more public debt increases, the higher inflation will be.
For example, look at the US government, once it runs out of money, it has to raise the public debt ceiling to borrow more money, and money is printed again, inflation continues to increase. That's why we basically want to reduce inflation. , it is necessary to reduce public debt and tighten government spending in a reasonable way.
But an unreasonable thing is that the people are the ones who create property, but the government is the one who decides to use it.
Every institution is the same, because of this, no country can avoid the story of people spending money from people's taxes for improper purposes and ineffectiveness, causing public debt to continuously increase.
This weekend, let's tell you a true story from Trump before he decided to become president.
In 2016, when Trump was still planning to run for office, at that time he was not yet a candidate for the Republican Party, that year his daughter told him that in 1980 the government wanted to build an ice skating rink in the city center. New York.
Since 1980, the New York government has spent 6 and a half years and $13 million in public investment....but still has not finished building the ice skating rink.
At that time, Trump thought, how could the government do such a miraculous thing?? He called the city government and said,
"I will build an ice rink, it only takes 3 million dollars and 4 months, leave it to me"
That year, the government also ridiculed him, even made his opinions public to everyone, but it unintentionally backfired, because the people waited too much to bear, they supported Mr. Trump, and in the end The government had to give him work to prove to the crowd that he was just a liar.
Mr. Trump has no experience in design or construction, but his business intelligence has helped him recognize the core problem that needs to be addressed.
He knew that the government had hired a company from Florida, in the southern United States, where it is always warm, there is no winter, this company is just a front to receive public investment money from politicians.
He decided to find a company from the North, and Canada was the best choice
He found a company in Toronto that had built ice skating rinks for the Olympics, their technology was top in the world.
As a result, it only took 3 million US dollars and it took 3 months to complete. Moreover, in that 3 million US dollars, he also saved 750 thousand dollars to improve the business room and restaurant, creating great profits for the government. Here we clearly see that when we put the public investment cash flow from people's taxes into private hands, the result will be very different than in the hands of the government or any country. Why, because in private hands it will be the same? There is government supervision, but when it comes to someone else's subsidiary, the supervision is sometimes no longer there. In general, the results, speaking of ability, are not in dispute
For that reason, national public debt will inherently increase continuously, and there are only two ways to reduce it
1. Reduce public spending and use it appropriately
2. Increase production, to keep up with the debt being printed
Wish you a happy weekend!
