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A deficit isn't necessarily unsustainable over a period of economic growth. If growth and inflation outpace the cost of borrowing, it's worthwhile to borrow.
by Mikeb85 11y ago
A deficit isn't necessarily unsustainable over a period of economic growth. If growth and inflation outpace the cost of borrowing, it's worthwhile to borrow. Kind of like the US is doing right now.
- tptacek 11y agoThat's a good point, but the obvious next Google search suggests that Greece's economic growth was unspectacular during the early 00s, and began lagging in '06.
- Mikeb85 11y agohttp://www.tradingeconomics.com/greece/gdp http://www.tradingeconomics.com/greece/gdp Greece's GDP nearly tripled from 2000 to 2008. Their debt to GDP was comparable to other European nations until 2008 (105% of GDP).
- coob 11y agoAnd we're treating those figures as trustworthy are we? Eurostar consistently failed to validate numbers provided by the Greek government in that period.