Quote:
Originally posted by Almighty Colin@Mar 5 2005, 01:18 AM
Whenever I read articles like this I wonder why the author didn't take the time to point out historical comparisons and contrasts. Take the US federal debt, for example. It is a record high. But so is the US GDP. On a percentage basis the federal debt is less than it was during World War II. As a percentage of GDP, it is about average for a G7 country. Historically, what has been the result in nations who hold debt around 60%-70% of GDP? How is today's economic situation different and which comparisons are most appropriate?
Low savings rate? Good or bad? What are the historical precedents? Low interest rates mean that money in the bank is not as good of a deal as it once was. Where is that money going? Home ownership, toys or food?
High consumer debt? Same as above. And how does one factor in low interest rates which make borrowing cheaper?
An imbalance in the trade deficit? So if both imports and exports continue to grow steadily but imports grow faster is that good or bad? What are the historical precedents? What is the right balance? What would we do about it anyway? Should we restrict imports with tariffs?
These articles never make the appropriate historical connections and it makes me wonder if the author even knows what they are.
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if i could have the rights to that argument, i could use it again and again. i can never answer a question with a question and feel good about it. so i am just going to copy that post and whenever i hear griping about how out of control the debt is, im just going to read it.
03-05-2005
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