The Era of Trump?

[donquixote99]

The government debt is a tragedy of the commons. Rent-seeking investors seek to hold as much as they can, since it is seemingly riskless and pays interest. So they favor minimal taxation to give them maximum cash to invest in it, and maximum debt financing of goverrnment. The idea is, tax is money out the window, but give the same money to the government as debt and you get interest forever. Only at some unforseable future point will the endless demand of individual investors for more debt result in a collective 'break the bank' effect. ANd right up to that point, each individual investor will still see it as in their interest to get more debt.