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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: kumar who wrote (212039)1/8/2007 1:24:33 AM
From: mistermj  Read Replies (1) | Respond to of 281500
 
100% finance and interest only payment is not good.

IMHO, the US govt is close to being (if not already) in the 2nd category.

Based on what?



To: kumar who wrote (212039)1/8/2007 1:55:16 AM
From: mistermj  Read Replies (1) | Respond to of 281500
 
EDIT: like another poster noted : Govt is not in the biz of expansion to deliver profits to shareholders. Thats a big diff in approach.

Economies that aren't growing...are dying.

So yes, governments are in the business of expansion.




To: kumar who wrote (212039)1/8/2007 10:59:48 AM
From: neolib  Respond to of 281500
 
managed and prudent debt is good to expand.

What is always surprisingly lacking from discussions of Keynesian economics is what the optimal debt rates (and optimal tax rates) are. Same applies for foreign trade as a fraction of domestic trade. The comfort levels shift over time, and do me, they look more like comfort levels than anything to do with a theoretical optimal value.


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