7 ms·
If that's the case doesn't it still make sense to try and reduce debt? Due to unforeseen circumstances? Going by your metaphor we could say the possibility of t
by dnissley 3y ago
If that's the case doesn't it still make sense to try and reduce debt? Due to unforeseen circumstances? Going by your metaphor we could say the possibility of the industry you work in becoming a lot less lucrative due to technological advances, or macroeconomic changes like jobs going overseas -- this isn't an abstract threat! It's happened before and will happen again!
- SkyPuncher 3y agoYes and no. I'm getting into opinion territory now. Largely, the USA is such a dominate world power that it running into trouble on its debt would mean global repercussions. That unforeseen circumstance would have rippling effect around the world. At which point, it wouldn't really matter if the USA was affected. Everybody else would be affected too.
- dnissley 3y agoYep, totally get that possibility. We've seen it with the 08 financial crisis, COVID (esp. wrt money printing), and even down to more mundane things like nimbyism + pension underfunding (traps that many/most other developed nations have fallen into). Still it makes me squeamish and makes me want to point out that just because we can't conceive of a threat unique to our particular position doesn't mean that one doesn't exist! But a lot of what drives me to think that is almost certainly just my own risk intolerant disposition, which again comes down to opinion.