crs1026
Superstar
Your house isn't an economy. You'll die one day, states don't. That (among other things) changes everything regarding personal vs. government finances.
The difference is - since my house is paid off, when I die, my kids will inherit it free and clear. Whereas with government, they will inherit my share of the provincial debt and have to carry it, as well as paying for whatever services that they get from government.
If you look at where the debt is being spent, an awful lot is going to services for an "aging population". I.e. - people who will die before paying it all back.
How is adding new debt at a faster rate than paying off old debt a good thing, in the long run?
Exactly. I don't have a problem with government borrowing to build, such as to create infrastructure.... provided there is a paydown schedule and the asset doesn't reach zero value before it's paid off. Just racking it up debt for things that don't hold value is less prudent.
- Paul