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by RyanMcGreal
5366 days ago
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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. |
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