3 ms·
How are you measuring wealth? Global debt is nearly 4 times global GDP
by catmanjan 6y ago
How are you measuring wealth? Global debt is nearly 4 times global GDP
- KMag 6y agoDebt is an absolute level. GDP is a rate of production. Debt / GDP ~= 4 years. That doesn't sound insane, particularly if much of that debt is secured, but I'm not any sort of financial analyst.
- iso1631 6y agoBy comparison my mortgage is 3 times my income, and that's not a high level. Of course the other issue is that my personal "gdp" runs out when I retire - thus I have to pay capital as well as interest to continue to own the asset afterwards. That doesn't apply to countries.