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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: RMF who wrote (17996)	2/23/2007 5:55:59 PM
From: TimF	Respond to of 71588

That was thinking for myself and its a pretty simple concept. If you have a problem with variables I can make up an example with actual numbers. A country with a trillion dollar GDP, can deal with a deficit of $30 bil, and a national debt of a $500bil, far better, than a country with a $100bil GDP could. Or to restate the concept, rather than a hypothetical example, the larger your GDP, the easier it is to deal with a certain amount of debt. Therefore if your concern is how well the economy can handle the debt its more important to consider the debt as a % of GDP, rather than to consider it in nominal, or even real dollars.