6.3 Government Spending and Inflation: Monetary Transition Foes

Use the book’s analogy contrasting our personal with the government’s hypothetical credit card, explain the debt situation of the U.S. government? What will happen if we continue of the current path? Answer
What is the reason that, in aggregate, all levels of government are racking up more and more debt? Answer
In the private marketplace, companies and institutions that issue high risk debt get assigned junk status, which means that they have to pay a higher interest rate. So why hasn’t the U.S. government reached junk status? Answer
Why is inflation a silent killer? How does inflation complicate the transition to a capitalist social system? Answer
What do we have to do to reduce government debt, to move away from threats of insolvency, and to slay the inflation monster? Answer