Source: Law & Liberty
by Leonidas Zelmanovitz
“Working taxpayers are encouraged to think of themselves as ‘lending’ money to the government to finance future benefits, but instead of the government investing those payments to generate the needed resources, those ‘loans’ are simply consumed by today’s retirees. This creates the monetary disequilibrium we experience today. Think now about bondholders. Savers believe that the instruments of public debt they own constitute wealth, even though that wealth has already been consumed and not invested. Distortions in interest and exchange rates follow from this disjunction. Either the wealth exists, or it does not, and at some point in the future, every society that creates false rights will have its day of reckoning. Unless something is done, it will be no different for the United States.” (03/19/26)