• ComicalMayhem@lemmy.world
    link
    fedilink
    arrow-up
    7
    arrow-down
    2
    ·
    5 months ago

    how much of this still applies when the debt is as big as the United State’s current debt? (genuine question)

    • turmacar@lemmy.world
      link
      fedilink
      arrow-up
      8
      ·
      edit-2
      5 months ago

      It applies more. If you borrow $1000 and by the time you pay it back (including interest) you’ve paid $1500, but that would have had the buying power of $2000 today, you’ve made a pretty good deal. If you do that with a trillion dollars, you’ve made a great deal.

      National Debt is a weird metric. For the US, the biggest foreign owners are Japan having ~4% and China having ~5% of the debt. The huge majority of the debt is within the US, either to individuals, businesses, or the government itself.

      • dariusj18@lemmy.world
        link
        fedilink
        arrow-up
        3
        ·
        5 months ago

        Plus there’s an old adage by J Paul Getty, “If you own the bank $100, that’s your problem. If you owe the bank $100 million, that’s the banks problem.”

        Similarly everyone you owe money to is now invested in your success.