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> Sustainability is a function of total annual deficit relative to growth in ability to service the debt And at some point the growth stops, but the policy of
by snomad 9y ago
> Sustainability is a function of total annual deficit relative to growth in ability to service the debt
And at some point the growth stops, but the policy of expanding generally doesn't.
Reality is, Europe and America are going to have further population declines a la Japan. Shrinking population = shrinking growth.
- ryandamm 9y agoWe also have immigration into the US. I read somewhere that growth in the population vis-a-vis immigration (and the higher birth rate of recent immigrants) propped up US growth, and explains both why the US didn't suffer as badly as Europe post-recession, and also why our demographics will look better down the road (better ratio of workers to dependents). Japan has very little immigration. Europe and America are obviously grappling with these issues politically, but it's pretty clear from the economic numbers that immigration is important for growth if you don't have stable population growth. (Japan and parts of Europe are in decline, as would the US be if not for immigration, I believe.)
- Spooky23 9y agoEurope yes, America no. We have two americas. Wealthy white people and the rest. The rest have a high birth rate.