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GB & Germany are getting closer to a balanced budget (Germany will probably get there next year). It's not impossible to pay off all debt, especially if inflati
by matt4077 12y ago
GB & Germany are getting closer to a balanced budget (Germany will probably get there next year). It's not impossible to pay off all debt, especially if inflation returns to healthy 3%.
- CamperBob2 12y agoA balanced budget doesn't mean you've paid off your debts.
- tonyedgecombe 12y agoI've noticed a lot of the media (in the UK) don't seem to understand this.
- calpaterson 12y agoI find the entire concept to be unavoidably confusing. In accounting, to "balance the books" means to complete the process of double-entry bookkeeping. Once the books are balanced you can then determine whether you made a profit or a loss. The political term "balance the budget" seems to be a corruption of the accounting term, and it means just for the state to break even. It seems likely to me that the coiner of this term had some misconception about double-entry bookkeeping - such as that you break even iff your books are balanced
- furyg3 12y agoIt doesn't mean you've paid off your debts, but it does mean you are paying off your debts. There is no need to pay off your student loans completely if the interest rate on them is low and you can do better things with your income. Making your payments is responsible. Paying them off (partially or entirely) means that you have nothing better to do with your income. Refinancing your student loans from 4% to 2% is a fantastic idea, however (which is what the UK is doing)
- femngi 12y agoIt was my understanding that despite cutting their budget deficit spending has actually increased substantially in GB over recent years.