Whilst simultaneously having a rapidly declining birth rate, and relatively low levels of immigration, to maintain a homogeneous society, without imploding in on itself?
In: Economics
In addition to everybody’s excellent answers, keep in mind that GDP is an annual number, and debt is not. When I first bought my house, I had a debt to income ratio of 207%. But my payments on the mortgage (excluding insurance and taxes) were only 10.8% of my income, and my net worth was positive, so despite being hundreds of thousands of dollars in debt, I had more than enough assets to cover the debt.
Debt is a balance sheet consideration, income is a cash flow consideration, and while comparing across those two things can be useful it has to be done in the context of their differences.
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