Quote:
Originally Posted by tony404
I just heard on the radio to forgive all those mortgages ,give the people those houses would only cost 200 billion. So why do they need close to a trillion?
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Because in this scenario the government isn't actually "spending" the 1 trillion...at least not in the sense that we're used to the government spending money.
They're buying things that cost 1 trillion, that they plan to sell at a later date for most (if not all or more) of what they paid for them.
In a sense you should look at it more like a loan that will be at least partially repaid, and at best repaid + interest.