Paying for COVID-19

Speculation on how governments can pay for the huge debt needed to support the economy during COVID-19.

World War II debt was never repaid, at least at the aggregate level. Old bonds were repaid with new bonds. But debt kept rising.

It was “paid off” in the sense that the economy grew faster than new debt accumulated

That’s how government debt gets repaid after it piles up. You don’t pay it off. You grow your way out of it.