Every Time the Government Spends, One Way or Another, YOU Pay

The US government is spending money at a torrid pace. Uncle Sam blew through $547 billion in January. That brings total spending through the first four months of fiscal 2021 to a whopping $1.92 trillion.

And this isn’t the end of it.  Congress is debating another $1.9 trillion stimulus package and there’s already talk of an infrastructure spending bill in the pipeline after that.

Eventually, somebody has to pay the bill. So how is the government going to pay for all this?

As Peter Schiff explains in this short clip from the Virtual Money Show, there are really only three ways the government can pay its bills.

1. The most honest way the government pays its bills is through current taxation;
   
   
2. The second way the government can pay for spending is by borrowing money. In this scenario, the government is taxing the taxpayer in the future; or
   
   
3. The US government has borrowed so much money to try to delay the day of reckoning for so long and kick the can down the road as we go deeper and deeper into debt that now we have a national debt that’s approaching $30 trillion. There is no way the US government can finance that.”  The inflation tax lowers our standard of living just like direct taxation. It’s just harder to see. And that’s why politicians like it.

Share the Wealth!