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Tell that to the Canadian government. It currently considers massive deficits fine because of our debt-to-GDP ratio, despite GDP being driven by a real estate b
by transcriptase 4y ago
Tell that to the Canadian government. It currently considers massive deficits fine because of our debt-to-GDP ratio, despite GDP being driven by a real estate bubble for the last several years.
- opportune 4y agoThe Canadian government is also growing their tax base/GDP quickly due to high levels of working-age immigration, not just real estate
- bee_rider 4y agoIs there a requirement to keep the debt-to-GDP ratio below some cap or something? Or is this just the reason the give when questioned about it by the media, etc?
- transcriptase 4y agoIt’s the reason given, usually in comparison to other G7 countries.
- kornhole 4y agoIt is not just Canada. The US and other countries justify their debt levels by this and it is used by bond traders to measure health of bonds issued. Military spending as percentage of GDP is also cited. So if military spending and borrowing ability is pegged to GDP, you can see why we pump it up as much as we can as distorted as it is on a nation's internal well being.
- deltree7 4y agoOnce again show me an economic policy that is tied to GDP
- deleted 4y ago[deleted]