Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Is it more useful to talk about "Total US debt" than "US government debt"? When I first read your comment, I thought you were making the point that the article was misleading because it was using a fraction of GDP as a measure, when it in fact the main feature graph is measured in trillions of dollars.

To a lay reader like myself, it would easily lead to confusion if people talk about different numbers without making the distinction clear. Is there a well known relationship between government debt and private debt? Or is talking up Total US Debt just a distraction from the article, which talks about Government Debt?



>Is there a well known relationship between government debt and private debt?

Yes.

"[...T]he difference between the government budget deficit and the trade deficit must equal the difference between private saving and investment[...]"

http://internationalecon.com/Finance/Fch5/F5-9.php

Holding the trade deficit constant and lowering government debt implies a rise in private debt.


How the heck would you hold the trade deficit constant, and why would you even if you could?


I wasn't recommending holding the trade deficit constant, I was isolating the relationship between public and private savings. And if I ever say "all other things being equal," I'm not actually recommending that all other things be made equal.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: