do so. Then life is no fun at all. No, our children don't have to "pay off" the debt and they get to enjoy all they produce, but it may not be of the same quality that we enjoyed. In other words, the value is lower (a decrease in purchasing power). On top of that those government IOUs may turn into cash which wants to buy assets, so you get inflation. This is exactly what did happen to the Soviets over time. For the benefits to exceed the cost those displaced have to find employment that produces value to our society larger than the payment being made to them, regardless if it is private or public otherwise the end result is a long term decrease in purchasing power for society as a whole. Most commenly manifested as inflation which harms those without assets moreso than those with assets. I don't think we disagree on the process, I think we disagree in the result that everyone "willing and able to work employed and producing real output". I think there is a real risk that they produce no real output if we allow the production facilites (more importantly the knowhow and skills) needed to produce real output be moved to another nation who uses our monetary system to do so. If the exchange rate floated then the movement of those facilities would adjust the purchasing power impact to today rather than into the future. And there are a couple more comments I