4 ms·
> A one time expense of 8% GDP for a 4% growth is great. That means it would get paid back in two years (...) Not quite. The payback time will depend on the gr
by tcgv 3y ago
> A one time expense of 8% GDP for a 4% growth is great. That means it would get paid back in two years (...)
Not quite. The payback time will depend on the growth in government revenues, which should be correlated to GDP growth, but a fraction of it.
- everforward 3y agoIt's also ignoring interest.
- s1artibartfast 3y agoBorrowing $8 to make $4/year is a good investment as long as interest is less than 50%
- s1artibartfast 3y agoeven if it doesnt increase revenue, it can be a good investment. The purpose of the government isnt grow, it is to serve the people