How do countrys get in so much debt and why do they keep expanding on ther debt?
In: 9
On a smaller theoretical scale you could take a loan for 500k, buy a house for 400k, compartmentalise it into 4 smaller studios with the remainder and rent each studio for 1.2k bringing you in 4.8k before any taxes and landlord duties etc, let’s just say net 3.69k a month while the loan repayments are only 2k a month spread over 20 years, ultimately netting you profit.
Scale this up to governments who will borrow the money to reinvest in what the comments around here are saying, lol.
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