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Why is government debt measured vs GDP? Why isn't debt measured against revenue (taxes)? Or tax rates?

• toomuchtodo 2y ago
  Because the GDP (and the ability to tax a slice of it) guarantees the debt. Think of it as loan to value (LTV). “Someone is going to have to pay it back, right?” he said, not so confidently.
  • chiefalchemist 2y ago
    So the foundational assumption by economists and fin-types - sociopolitical implications aside - is that resolving the debt is as simple and easy and jacking up taxes? Tell me when I can stop laughing.
    • toomuchtodo 2y ago
      Alternatively, you print fiat and inflate away the debt ("currency debasement"). Favorable for those with debt, unfavorable for those holding currency and assets. Regardless, at some point, the music stops and the collective delusion this debt gets paid back ends. "Extend and pretend."