Quote:
Originally Posted by CrazyLond
This is a very bad analogy. GDP is not a measure of the federal government's income or its ability to repay debt.
The government's income is tax revenue minus expenses. In recent years, it has been approximately negative $1 trillion. So a better analogy would be someone who loses $27k a year and has to borrow to make up the shortfall when they already owe $500k.
Swap income for collateral, and repeat argument. Turns out analogies here are flawed anyway, since your average joe can't levy taxes on his neighbors to make up the difference.
Also, run a deficit in recession, run a surplus in boom. More standard than c-betting.