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That 4% is very deceptive. It gives the impression, that there is some room to stretch it. But is there? I mean, you're talking 4% of a situation where 100% is
by brain5ide 8y ago
That 4% is very deceptive. It gives the impression, that there is some room to stretch it. But is there? I mean, you're talking 4% of a situation where 100% is total heat death of all the participants in the economy. Where any amount gained in the system goes towards the deficit. This is bonkers.
- lmm 8y agoOur ancestors would probably think that an economy that spends 97% of GDP on things unrelated to food production is bonkers, but here we are. If high government debt was decreasing economic participation that would be cause for concern. But is there any reason to believe it is? Japan is running a much higher debt-to-GDP ratio and while people are (probably rightly) worried, the fact that nothing catastrophic has happened there yet suggests that there's at least that much slack available.