You can’t use your GDP to pay off debts. Wouldn’t it be better if we used how much % of a goverments budget goes towards servicing debts?
You can’t use your GDP to pay off debts. Wouldn’t it be better if we used how much % of a goverments budget goes towards servicing debts?
Because the people utilizing debt want to measure it against the largest number they can find… also because, in an extreme situation, the GDP is essentially the value that a government could surrender to creditors.
Nope most of the GDP belongs to private sector.
The government has the force to seize that if they so choose… it’s unthinkable in America because of our liberties but it isn’t in other nations.
Edit: I don’t know why this is being downvoted - it’s called nationalization and it can and has happened with or without monetary compensation to business owners in various times through history… I’m not suggesting uncompensated unilateral nationalization but it has been used for debt relief in the past.
You’re being downvoted because people only think in the context of their own experiences - hasn’t happened to them so it either isn’t that bad or didn’t actually happen.