Re:U.S. Government already projects $1T deficit every year f...
by jfengel on Monday October 18, 2021 @05:15PM
(#28911869)
But only because the mortgage holder is going to die one day. That's the big difference between you and a corporation or nation. The country can revolve its debt forever.
There is a limit to how much debt it can support, but it's determined only by that country's productivity and tax structure. As long as it can pay the interest, it can keep growing its debt.
Eventually that reaches equilibrium, but there's no reason for any particular $BIGNUM to be the equilibrium point. It's currently around 10% of all spending, which strikes me as a large but not unsupportable number.
There is a limit to how much debt it can support, but it's determined only by that country's productivity and tax structure. As long as it can pay the interest, it can keep growing its debt.
Eventually that reaches equilibrium, but there's no reason for any particular $BIGNUM to be the equilibrium point. It's currently around 10% of all spending, which strikes me as a large but not unsupportable number.