Saturday, December 26, 2009

COTD: Riddle Me This

clipped from

Riddle me this Z-men (and ladies):

When calulating an individual person's financial risk and viability, we look at his debt to income level (DTI), but when talking about a country we always look at debt to GDP.

However, is this valid?

Every dollar said government borrows and spends makes the GDP go up.

This is akin to looking at an individual person and counting everything he has purchased with his credit cards as "income".



(Also, the GDP is not the Government's income.  It is ours.

As soon as the government starts creating something of value and selling it at a profit, it can count it as it's income.)