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Also quite interesting is that total EU debt stayed ~constant 2008-2016, while in the same time frame US federal debt ~doubled.
by _0ffh 9y ago
Also quite interesting is that total EU debt stayed ~constant 2008-2016, while in the same time frame US federal debt ~doubled.
- adventured 9y agoThe US made a huge fiscal mistake in going on a hyper government spending spree in response to the recession, whereas most European nations heavily locked down spending expansion. The US did however get new annual economic output the size of Germany's entire economy out of the 2008-2016 time frame. During that time, the EU's economy didn't hardly expand at all, with numerous nations suffering hardship (eg Spain, Italy, Greece, Portugal, Finland). France and Germany also saw essentially zero growth during that time (France lost $400 billion off its GDP due to the dollar, from 2008-2016). It's only just in the last 12 to 18 months that the EU economy is starting to pick up steam. Which approach is better? I prefer lower debt personally, I would have rather the US lock down spending to population growth in response to the recession; such that we might have closer to 60%-80% debt to GDP today.
- _0ffh 9y agoGood point there. While I also think that lower debt is very desirable, the US example here seems to show that there is a positive effect to be had from spending as opposed to a strict austerity policy. It's probably a matter of degree and specific circumstances and goals how much spending exactly is most appropriate.