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I would put aside statistics and whether we completely understand how the economy works (we don't). Just ask...are there are very fundamental differences betwe

by HFguy 3y ago

I would put aside statistics and whether we completely understand how the economy works (we don't). Just ask...are there are very fundamental differences between the finances of an individual and the government? There are. For starters, the government can simply print money and pay off debts. They can also choose, by their actions, to inflate away nominal liabilities. So then it is reasonable to consider that "being in debt" may have different ramifications for the government than for an individual.

uticus 3y ago
> may have different ramifications for the government than for an individual I can only agree ramifications look different when an inappropriately narrow timespan is in focus. Thinking through history, what nations have been able to ultimately avoid ramifications from significant debt – the same sort of scenario that would in proportion cause ‘ramifications’ for individuals or businesses? I can think of several historical instances where a nation having significant debt appeared to have no ‘ramifications’ early on but were unable to avoid the inevitable (and inenviable) outcomes. I mean, even an individual may get deeply – horribly - in debt yet avoid ramifications for a time. But the bills will come due. No doubt a government is not the same thing as a business or an individual. But to dismiss government debt as playing by different rules than debt elsewhere is foolish.