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Looks to me like GDP is growing faster than the debt, at least over the past 2-3 years: https://fred.stlouisfed.org/series/GFDEGDQ188S https://fred.stlouisfed.o
by morepork 3y ago
Looks to me like GDP is growing faster than the debt, at least over the past 2-3 years: https://fred.stlouisfed.org/series/GFDEGDQ188S https://fred.stlouisfed.org/series/GFDEGDQ188S
- thrawa8387336 3y agoYou need to look at real GDP not nominal.
- chrchang523 3y agoDo you? I don’t like it, but the government is allowed to pay off the debt with inflated dollars.
- thrawa8387336 3y agoI mean, meanwhile the standard of living keeps declining. Health, food, transportation...
- morepork 3y agoNominal debt / nominal GDP should be equivalent to real debt / real GDP, so it shouldn't matter
- simple-thoughts 3y agoYes due to soft default (inflation). If you look at projected debt burdens, they are predicted to grow faster than gdp if inflation targets are met. If inflation targets aren’t met, like they haven’t in the past few years, then it’s effectively a default since the government is paying back less in inflation adjusted dollars than it borrowed. Plenty of other countries have tried this strategy and it doesn’t merit a high credit rating.