how can advanced economies run budget deficits for basically forever?

730 views

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

In: 316

30 Answers

Anonymous 0 Comments

They can’t that’s why crucial things like housing and education is getting increasingly expensive while the wealth gap increases. The entire system almost collapaed in 2008, the entire thing is one big experiment. You inherently understand that it doesn’t make sense, we are pulling from the future to pay for the present. Don’t let anyone try to tell you differently they are trying to gaslight you

You are viewing 1 out of 30 answers, click here to view all answers.