Monday, July 13, 2009

Worried about government debt?

Then don't look at this.

It'll make you realise you should have been worrying much more all through the 1910s, 1920s, 1930s, 1940s, 1950s, 1960s, 1970s, 1980s and 1990s:

Thanks to Bill Mitchell for reminding me.

The source is the Treasury itself. I wrote about it at the time here, as it happens earning a Saturday morning phone call expressing the Opposition's displeasure.

STOP PRESS: The Parliamentary Library have just put out a paper on the topic.


Anonymous said...

But surely with the government guarantee on the bank debt this should be moved into public debt. The government liability increases from 3.2% of GDP to 73.3% of GDP.
Or isn't the government guarantee a real guarantee?

carbonsink said...

Its private debt that I'm worried about. I dare you to post a private debt to GDP chart, or do you subscribe to the theory that private debt doesn't matter?

Michael S said...

He subrscibes to the theory that whatever tha Labor party does matters little.

Peter Martin said...

I don't think either matters much in and of itself.

Although I understand that markets may (suddenly) take a different view, which would make my own thoughts beside the point.

I'll look for a private debt graph.

Pete (not Peter Martin) said...

Haha, what a useless chart. We all know we had no real deficit in the decade up to 2008.

Consider this: 2009 onwards, debt balloons whilst GDP shrinks.

Stop dwelling on the 1998 - 2008 decade and think about the future.

Show me this chart in 10 years time.

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