Author Topic: Government Day-to-Day  (Read 13996 times)

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Offline wilber

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Re: Government Day-to-Day
« Reply #180 on: February 10, 2020, 12:19:14 pm »
National economies do not work like personal finances.

Yes they do. If you borrow more money, you need more income to finance the debt. If you don't pay off the debt, you have to carry the interest until you do. What did you think debt to GDP means?

A few years ago BC replaced the Port Mann bridge at a construction cost of 2.5 billion. In another 60 or 70 years that bridge will need replacement and will probably cost four or five times as much. Aside from paying interest on that 2.5 billion for 60 or 70 years, do you think that 2.5 billion debt will just disappear along with the old bridge when it is torn down?

This is pretty basic stuff.
« Last Edit: February 10, 2020, 12:26:04 pm by wilber »
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