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PoliticAverse

(26,366 posts)

7. Deficit spending isn't an issue until borrowers suspect you aren't going to pay it back...

Reply to steve2470 (Original post)

Tue Jun 30, 2015, 11:48 AM

Jun 2015

then they stop lending you money at reasonable rates and people realize they will
actually have to pay fully for the things they want as well as pay back the money
borrowed at increased interest rates.

Note that the WW2 GDP/debt ratio is somewhat misleading as the economy was disrupted.

https://en.wikipedia.org/wiki/List_of_countries_by_public_debt

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question about deficit spending [View all] steve2470 Jun 2015 OP

In grossly oversimplified terms geek tragedy Jun 2015 #1

yes that was my understanding, thank you! nt steve2470 Jun 2015 #2

One reason why Bush tax policies were a disaster! on point Jun 2015 #4

short term high defecit spending is not a problem Travis_0004 Jun 2015 #3

Right now our debt (not deficit) is around $ 18 trillion Yupster Jun 2015 #5

Well, Keynes says.... Adrahil Jun 2015 #6

Deficit spending isn't an issue until borrowers suspect you aren't going to pay it back... PoliticAverse Jun 2015 #7

Households can go bankrupt through a few years of bad decisions. Orsino Jun 2015 #8

Deficit spending is just a failure to properly tax the rich Taitertots Jun 2015 #9