They make laws that claim to be for everybody but are only for people who aren’t rich or powerful. The rich and powerful can commit bribery, human trafficking, murder, and more without consequence but yet jail people for doing the same thing. It’s like parents who swear all the time but punish their children for swearing.
Don’t forget debt. I have to have an emergency fund but you just print money and spend it like there’s no tomorrow for years on end?
That’s because macroeconomics actually do work differently than microeconomics. The idea that a country should be run like a household is fallacy.
Maybe, in a perverse way, they aren’t all that different in the extreme. If I were a billionaire, I can take loans out against my securities basically forever. Governments can sustain a growing debt load forever if it grows more slowly than GDP.
Alas, I am not a billionaire.
A responsible company would have a 6 month emergency fund… Failure to plan ahead should not be my emergency
I’d argue that a responsible country should have something like a 10 year emergency fund. You never know when some natural disaster might come along and cripple a critical segment of your country’s production.
Instead they’ll just print more money and rob the poor and middle class through inflation… which drives stock prices up keeping the wealth of the wealthy fairly protected while the poors stay at the same level of income and have less proportional assets.
What’s the difference between $10 billion in printed money sitting in the federal reserve for such a fund and printing $10 billion dollars on the spot? Neither is affecting the economy until it leaves the federal reserve.