For example, it’s really expensive to build a new bridge and whatever level of government can’t afford to pay for that. It’s not like you can just demand an extra $1B in taxes.
But whatever level of government can issue a bond to borrow money, with a promise to pay back in x number of years, and can make that regular payment through money coming in by taxes
Great explanation, and also …
For example, it’s really expensive to build a new bridge and whatever level of government can’t afford to pay for that. It’s not like you can just demand an extra $1B in taxes.
But whatever level of government can issue a bond to borrow money, with a promise to pay back in x number of years, and can make that regular payment through money coming in by taxes