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FWIW, Japan's at 225% of GDP (source Wikipedia) and they seem to be still functioning. Although their financial systems haven't really recovered since the bubb
by jleyank 15y ago
FWIW, Japan's at 225% of GDP (source Wikipedia) and they seem to be still functioning. Although their financial systems haven't really recovered since the bubble burst 2 decades or so ago.
- samlevine 15y agoBasically anything under 100% is feasible to finance without too much cost to the public. And once you get to the point where you want to go on an austerity budget the point is to lower the deficit in most cases, not pay down the debt (which would slow the economy, which you need to increase so that your debt slowly becomes a lower percentage of GDP).