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Presumably you are young and you hopefully have your whole working life to pay this mortgage back. A country as a whole consists of people of all ages. If they
by cjfd 6y ago
Presumably you are young and you hopefully have your whole working life to pay this mortgage back. A country as a whole consists of people of all ages. If they borrow as much as the young could they are enlisting future generations, who get no say in whether they enjoy this, in paying back these debts. One can ask ethical questions about that. On the other hand, one can argue that covid is an exceptional situation....
- notahacker 6y agoMuch of that 281t debt is private debt payable which the person or organization that took it out has plenty of time to repay though. Many debtors will expect substantial financial returns on that borrowing, and all of them will have borrowed with the expectation (rightly or wrongly) that the share of GDP they earn in a given year will be greater than the share of debt repayment they owe that year. The details of who owes what under what time frame and whether they are likely to be able to repay matter much more than debt/GDP ratio or the absolute size of the debt burden. It is possible for the debt-to-GDP ratio to be sub 100% and a financial ecosystem to be on the brink of collapse because the people borrowing the money earn too small a share of GDP to repay, and it is possible for the debt to GDP ratio to be well over 400% whilst consisting entirely of people borrowing money to make sensible, easily repaid long term investments. The reality is somewhere in between.