Question

What Can The U.S. Government Do To Pay Back Lenders?

Answer 1

Some times Governement will borrow money from the lenders for meeting various purposes. It is considered as embarracing but these days government borrow money from the market for new innovations. Incase of US Government they use different measures to repay the money which they borrowed from the lenders.

Government will develop a fiscal surplus then it will used to buy back existing government securities. So buyback of shares is one of the measure that the government can raise some funds. Mnaging of finance and making excess surplus is an important thing. Government always try to make a proper balance between income and the expenditure. So inorder to make a surplus they need to increase its income over the expenditure. So the best way to increase the income is Taxation policies. The taxation policies will helps to increase the government income and this can use by the Government to repay the lenders. Another way is using the yield dividends of the public companies. By using this dividends government can repay the lenders. If these measures are not possible to execute then they will try to borrow money to pay existing lenders or printing currency with the fed is also another strategy used by the government.

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