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Smart. Why wouldn’t you do this in sustainable amounts. For example many Americans don’t pay off their mortgage as the money is better put in investments long t
by bushbaba 5y ago
Smart. Why wouldn’t you do this in sustainable amounts. For example many Americans don’t pay off their mortgage as the money is better put in investments long term. Why should our country be any different?
Why shouldn’t the government borrow money at low rates to spend in ways that raises gdp generating new tax revenues that are higher than the interest paid for said loan?
- Ir0nMan 5y agoBecause gov spending is not limited to only that which has a positive economic return. If it was we wouldn't have this problem.
- Fezzik 5y agoThey may not pay it off, but they have to at least make monthly payments to pay the principal down. For good reasons no bank is going to give a mortgage holder an ever-increasing line of credit on a home mortgage.
- jfengel 5y agoBut only because the mortgage holder is going to die one day. That's the big difference between you and a corporation or nation. The country can revolve its debt forever. There is a limit to how much debt it can support, but it's determined only by that country's productivity and tax structure. As long as it can pay the interest, it can keep growing its debt. Eventually that reaches equilibrium, but there's no reason for any particular $BIGNUM to be the equilibrium point. It's currently around 10% of all spending, which strikes me as a large but not unsupportable number.
- bushbaba 5y agoYou can get an interest only mortgage.