Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Or maybe governments should just not take on ludicrous amounts of debt.


Debt isn't good or bad in itself. Whether a given debt is bad depends on some factors:

* What is the debt as a fraction of GDP?

* What is the interest rate on the debt?

* What is the growth rate of the economy?

* What was the debt incurred to finance?

If a large public debt finances critical public infrastructure that will promote rapid economic growth and interest rates are reasonably low, the country will be in a situation where the economy is growing faster than the debt and the debt-to-GDP ratio is going down. That's a good situation to be in.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: