Question

Do you think there is a real threat that the US might resort to printing money if tax revenue would become insufficient to cover the desired spending by the government? Why or why not?

Answer 1

No

This is because printing money to cover the gap in tax revenues would be a foolish thing to do because printing money comes at its own risks and costs.

Firstly, printing money in itself is a costly affair

Secondly, printing money means increasing money supply in the economy which means the economy will experience rise in its price level and thus inflation

If this inflation is not checked on time, it would lead to the economy falling into an inflationary crisis and thus experience losses.

Hence, printing money is not a credible threat by the US