Why can't we use some of the existing $11 trillion to "stimulate" the economy and create jobs?

1 Answer

Answer :

Money is only borrowed to keep the government operational. They don’t borrow, say, two billion, just to have two billion sitting around for a rainy day. The borrowed money is carefully calculated, and the Bureau of the Public Debt borrows only what is absolutely necessary to pay for governmental operations. Hence, it’s not like there’s 11 trillion sitting around waiting to be spent. And that’s where the different strategies come into play on Capitol Hill. Some legislators prefer to spend only the money that is paid for by matching tax increases, tariff increases, or other monies. Others prefer to spend what they deem necessary, borrowing if necessary. This particular bill will be directly paid for by loans and borrowing, but, if all goes well, the federal government will get most of the money back through the resell of toxic assets that will be purchased during the bailout for nominal sums.

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