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70% of the US federal government budget is 15% of GDP. Not such a big deal, especially considering that we're going to be paying for pensions and healthcare som
by comicjk 9y ago
70% of the US federal government budget is 15% of GDP. Not such a big deal, especially considering that we're going to be paying for pensions and healthcare somehow, whether as a government program or otherwise.
Rubicon? I don't recall the sacred oath not to cross a 100% debt-to-GDP ratio. What's the importance of that particular round number, which many countries including the US have crossed in the past, except for rhetoric?
Finally, what makes you think corporations are holding cash waiting for fiscal stability, of all things? How would US dollars or bonds help them in case of US fiscal instability? Isn't it more parsimonious to think that they're waiting for return on investment? And that has much more to do with growth than with government debt.