[OT] Euro ‘hangingby thread’)

Aug 21, 2023 Last reply: 2 years ago 2 Replies
V


Eh? Of course the government needs debt - for capital projects like hospitals,


> roads, schools, er, HS2. So the repayments are bound to have an inpact on
> revenue spending - in much the same way as a mortgage takes a chunk out of
> income for private households. Private households on the whole manage. So
> should governments.
>
> Properly managed, it's not a problem.

When I was young I had a mortgage. I had to have one because I hadn't had time to build up any capital. I don't have one now, and I pay for things I want out of my income and saved capital.


The country isn't young. Our system has been around since Charles II IIRC. By now it shouldn't need to borrow money, it should have saved enough for its spending.


The real reason we have debt is because it allows the government of the day to do things that may attract votes, and leave the next government to pay for it.


Andy


Vote
Twitter Facebook LinkedIn
T

That's not how countries work. Property is an asset that maintains value, so you have something that both provides shelter and retains the money that you put into it. Once you own a house, you don't need to pay for it again (apart from maintenance). Even if the house falls down, you still own the land.

Things countries spend money on mostly don't maintain value (wars, education, healthcare, etc). You pay money for things, but those things don't last (you educate people but they eventually die, even faster if a war is involved). So you have to keep paying to do it all over again.

Infrastructure (canals, railways, roads, etc) sticks around for longer and has a better financial return, but it still costs for upkeep.

Theo

Vote
Twitter Facebook LinkedIn
V

Property is the only thing I've spent money on that retains its value.

I spend money on education, healthcare and transport. Just as with a government those are continuous expenditures. (I hope not to spend any on war).

I'm afraid I have no real faith in any government of any party or any country. If you know of a good one please let me know.

Andy

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required