Russell Coker via luv-talk wrote:
On Mon, 6 Jun 2016 01:20:31 PM Andrew McGlashan via luv-talk wrote: .......snip Yes, I can agree with all of that; but our national debt is low compared to many other countries -- so too are our fraudband speeds.... We recently had one of the nutty conservatives on this list arguing that out national debt was high and that we needed to cut government services.
And yes, I would prefer zero debt, Whatever you are running, personal finances, a company, or a country you have some choices about the amount of debt to have.
One needs to realise though, that as distinct from " personal finances" or "a company ", a government in some ways resembles a bank. Where the whole business model , relies on acquiring debt (the depositors) and lending it out at a rate in excess of inflation, plus the deposit interest rate. So whilst having a balanced budget has it's advantages and doesn't increase total debt; that total debt as issued government bonds; does play a vital part in the economy; by offering a return on investment better than a bank, combined with high security. Perhaps we could ask of treasurers whether their deficit will have a nett return , greater than bond rates plus inflation ; in the ratio of increased government revenue to that deficit; from it's expected enhancement to economic growth ? regards Rohan McLeod