And by economists all over the place. But IMO it doesn't tell you anything and it's an easy get-out. "Look, we might owe a bazillion and eight pounds but the country's GDP is more."
Originally Posted by pcstru
But I think it is a poor tool for deciding if you have too much debt. GDP is an approximate figure for how large the country's economy is.
GDP is what you have to look at if you are looking at varying the tax rates and the effect that variation will have in the future.
But you haven't kept ramping up the amount of debt you've got in the hope that something will come along. That seems to be the way the country is run.
10-15 years ago, 30-40% of my expenditure went on servicing debt. That did make things quite tight for a while but it seemed to work out OK in the end.
I'm not. I think property ownership is a bastion against tyranny. But I think that people nowadays are far too casual about debt.
Very few people could buy a house without a mortgage and that usually involves borrowing many times your personal GDP. I'm surprised that you might be suggesting that home ownership is a bad thing?
Was there ever a time when 'moneyed toffs' (to use your hackneyed phrase) didn't? A golden age when we were run by horny-handed sons of toil? I can't think of one.
And these days no one but the offspring of the wealthy could actually go to university without incurring substantial debts. So borrowing is something that will presumably be encouraged by Cameron if he wants to address the imbalance of monied toffs who seem to run the country.