/biz/ - Business & Finance

>>14865281
I think you're mistaking that for PAYGO retirement scheme, which is in fact a ponzi scheme. Population varies over time and when the ratio of workers per retiree falls to a low enough point it will go up, so that's why they're importing third world shitskins. But government debt is sustainable as long as annual growth exceeds long term interest rates on those loans.

Debt ratio = Debt / GDP
By increasing the GDP the whole Debt-to-GDP decreases. And if the costs of incurring additional debt (through interest rate) outweigh the increase in output (growth rate), then it's sustainable. It's only problematic if you've got governments that think on the short term and try to boost their popularity (PIIGS, various african countries etc...) by acquiring loans en masse. It's not exactly Macro101, but it should be fairy easy to understand.