Tuesday, January 1, 2019

Foreigners earn the interest charges

CBO estimates imply that TCJA will boost incomes for foreign investors but not for Americans
But here’s the kicker:  CBO figures that most of that additional capital will be financed by foreigners—for example, from overseas corporations building factories in the U.S., or foreign investors buying U.S. stocks and bonds. As a result, net payments of profits, dividends, and interest to foreigners also will rise. Unlike GDP, the GNP subtracts those net payments to foreigners from domestic production. GNP therefore provides a better measure of the impact on U.S. incomes. CBO projects that tax bill will boost GNP by just 0.1 percent in 2028.

And millennials pay them. 
The problem is Treasury debt, as long as politicians run up thr treasury debt, then all the new output goes to pay interest charges.   This does not compute,we know how much money the millennials have, not much.

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