One argument against using taxation to pay off the public debt is that it will redistribute wealth from richer bondholders to poorer people who do not own bonds.

Question

Quizplus · Accepted Answer

This statement is incorrect. Using taxation to pay off the public debt does not necessarily redistribute wealth from richer bondholders to poorer people who do not own bonds. In fact, it can have a minimal impact on wealth redistribution, as the distribution of bond ownership is not solely determined by income or wealth. Furthermore, reducing the national debt can have positive effects on economic growth and stability, which can benefit all individuals regardless of their bond ownership status.

One Argument Against Using Taxation to Pay Off the Public