It seems that most if not all advanced economies (US, Japan, UK to name a few) have been running budget deficits since basically the last 20 years. I understand that current debts lose value over time because of inflation and economies grow, but how can they do this for basically ever? I can’t wrap my head around the maths that makes this possible, and the markets don’t seem all that worried
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They can’t. Don’t believe all this MMT garbage; debt and deficits actually do matter. The reason they’re so common is because expectations were set based on higher fertility rates than currently exist in those countries so people want to keep growing the economy like before even though that’s impossible. The debt does end up having huge real world consequences though. Japan has the most of any country and hasn’t seen an economic growth in 30 years. China’s economy is is a huge downward spiral currently due to massive debt in the housing industry. The US hasn’t been hit YET, but it’s a certainty it will happen at some point in the future.
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