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The rate should be a factor of GDP growth - something like when GDP is growing 3%+, they can have 0 deficit, and shrinking, up to 5%. Or just some way to save
by jeffchuber 15y ago
The rate should be a factor of GDP growth - something like when GDP is growing 3%+, they can have 0 deficit, and shrinking, up to 5%.
Or just some way to save in the good times, and spend in the bad times.
- aquark 15y agoBut imagine motivations this could introduce: you can spend more money if you stall the economy !
- anigbrowl 15y agoThat doesn't make sense. If the economy is humming, then revenues are higher and you can spend more money that way. Nobody in their right mind would borrow when you could get as much or more interest-free via tax revenue.
- aquark 15y agoMaybe -- but getting the economy to grow to generate that revenue is a much harder problem than stalling it and then being allowed to borrow it.