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Comparing debt to GDP is mainstream economics, but it's very much different from the analogy of homeowners debts and their salaries. The proper analogy there wo
by coffeemug 3y ago
Comparing debt to GDP is mainstream economics, but it's very much different from the analogy of homeowners debts and their salaries. The proper analogy there would be government revenues, not GDP.
- PaulDavisThe1st 3y agoThe government doesn't owe the debt, we the people do. We authorized & enabled the government to incur that debt on our behalf.
- hamilyon2 3y agoThis is pretty non-mainstream macroeconomic point of view. It did not correspond to reality when latest sovereign debt default occurred in Greece. Then it was government, foreign banks who bought the debt and European Central Bank who was on the hook for restructuring, not citizens or general public.
- PaulDavisThe1st 3y agoWho was on the hook for the effects of the debt restructuring deal?