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In a completely hypothetical scenario- if every morning another zero was added to the national debt would there be any downsides? All other variables remain the
by bensonn 8y ago
In a completely hypothetical scenario- if every morning another zero was added to the national debt would there be any downsides? All other variables remain the same, unemployment, GDP, etc, only the debt increase ten-fold.
Does debt not matter because we have experienced relative stability and growth for 70 years? If we had another depression (not the hyped great recession but true depression) or world war, would we be better off with less debt or does it truly not matter?
- testpostpls 8y agoNot sure that’s a valid hypothetical yet. There needs to be a counterparty to this hypothetical debt—how will that work?
- dajohnson89 8y agoassume that the counterparties are the same as they are now, in identical proportion to their current outstanding balances.