Why are people concerned about fiscal deficits? For instance, the U.S. government, can't it just print money to solve this problem? Haven't many historical cases been resolved in this manner?

Many people think that if the government is short of money, it's simple: just print more! But in reality, it's not that straightforward, just like a household that's short on cash can't simply print its own money.

On the surface, governments can indeed "print money," but this money isn't conjured out of thin air. It's backed by the nation's overall economic strength and credit. If too much is printed, the money loses its value, prices rise, which is inflation. A meal that cost 10 yuan ten years ago might now cost 50 yuan – that's money becoming "worthless."

Countries like the United States do frequently issue debt and print money, especially during major events like financial crises or pandemics, when the Federal Reserve engages in "quantitative easing." But this comes at a cost. Excessive printing leads to dollar depreciation, a decline in international confidence in the dollar, and a reluctance for other countries to use it as a "hard currency." Domestically, imported goods become more expensive, the cost of living rises, and if wages don't keep pace, people's lives become harder.

Furthermore, governments can't truly print money indefinitely. While central banks have the power to do so, they must consider various factors like inflation, employment, and exchange rates; it's not something they can do whenever they please. The consequences of rampant money printing were seen in Germany's Weimar Republic and more recently in Zimbabwe and Venezuela – hyperinflation where a hundred-dollar bill couldn't buy a loaf of bread, leading to an entire economic collapse.

Therefore, fiscal deficits are concerning because they represent mounting debt. If solved by printing money, it might seem easy in the short term, but in the long run, it can trigger bigger problems: inflation, currency devaluation, inability to repay foreign debt, and even economic crises.

In essence, printing money isn't solving a problem; it's postponing it, and potentially making it much worse. It's like taking a painkiller: it works for the pain, but if the root cause isn't treated, the situation might end up being much graver.