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For all those who think that a high debt-to-GDP ratio is fine (put the meme picture here) and that the US will simply follow the Japan scenario for several deca
by fuoqi 3y ago
For all those who think that a high debt-to-GDP ratio is fine (put the meme picture here) and that the US will simply follow the Japan scenario for several decades at least (nothing great, but nothing catastrophic), I highly recommend to read this Lyn Alden's article: https://www.lynalden.com/economic-japanification/ https://www.lynalden.com/economic-japanification/
To summarize it: Japan and US are in two very different situations, the former is one of the largest world's creditor nations, while the latter is THE largest world debitor nation. The reserve currency status, while quite useful for kicking the can down the road, makes situation exponentially more dangerous when the can will hit a wall.
- mortureb 3y agoThat’s what you get for putting someone like trump in office. He increased the debt in one term as much the last decade and a half combined. The American people are silly.
- fuoqi 3y agoBoth parties love to spend public money. Remember that the COVID-related spending had a very high level of support from both sides. Same goes for the current administration with its "Inflation Reduction Act" (lol, talk about misnomers). Also, not all of the borrowed money were spent by the Trump administration. When he left the office, TGA had 1.6T dollars.
- mortureb 3y agoNo the deficit was massive under bush, fixed by Obama, ridiculously massive under trump and significantly improved by Biden. This isn’t bOtH sIDeS
- Ekaros 3y agoI don't think Trump is to blame for situation where both parties agreed to spend their way out of...
- mortureb 3y agoBoth parties don’t spend the same. The democrats always fix the terrible mess republicans have made. This is factual and not subjective at all.