Quote:
Originally Posted by Fuzz
Also interesting to comapre to other countries, like the US:
We don't look like we are doing so bad.
Some other countries:
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I think I'd rather have the economy of Luxemberg, Norway, Switzerland etc than Japan/Greece/Italy/Ireland.
Having too much public debt means the government will be competing with the private sector for capital, which will hurt the ability of the economy to grow in the long term. I'm not sure where the sweet spot is on that, but I do know that what is affordable right now may not be as affordable if interest rates ever go up again.
I'm not opposed to deficits when times are tough, but it seems like this is more likely to be a structural deficit. If it was a $10B deficit with an extra $20B of one-time spending on infrastructure projects, that would be much more palatable, imo.