As government debt exploded in 2020 to fight the economic fallout from the pandemic, investors are once again getting worried about rising debt/GDP ratios and what that means for a government’s interest cost and, ultimately, our taxes. Well, if you live in a major industrialised economy, like the United States, the UK, or most of the Eurozone, the answer is simple: not much.
How bad is an increase in debt/GDP really?
How bad is an increase in debt/GDP really?
How bad is an increase in debt/GDP really?
As government debt exploded in 2020 to fight the economic fallout from the pandemic, investors are once again getting worried about rising debt/GDP ratios and what that means for a government’s interest cost and, ultimately, our taxes. Well, if you live in a major industrialised economy, like the United States, the UK, or most of the Eurozone, the answer is simple: not much.