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overlooked in

discussion of what “right” debt/GDP ratio should be: - what is GDP *growth rate* being “financed” by that debt (ROI) - #Singapore, arguably 1 of best run economies in world, has even higher debt/GDP ration than US (*not all GDP ROI is equal)

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Nov 19, 2022

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5:32 PM · Nov 19, 2022

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Real question: I assume the growth rates are not static. Historically, does the growth rate for these countries vary more frequently than the debt/gdp?

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don’t know details for globe, but much of SE Asia has had strong growth for decades, and SG has always done well. US growth rate obv lower, but u could def argue countries w/ higher growth rates could justify higher debt/GDP ratio (if debt is used for good ROI projects)

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Seems like Singapore debt to GDP ratio spiraled recently so not sure if that argument is a good one.

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other commenter noted 1) due to covid, 2) SG not a debtor nation. regardless, still true that some countries might have better ROI on debt spend than others. not equal for all countries or spend.

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What is the conventional wisdom?

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You have a pod yet, Dave? I would def listen

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Dave, that would require a basic understanding of economic policy!!

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The number for Singapore for the past two years is due to the covid related expenditure. It is no where near that level if you look at historical data - data.worldbank.org/indicator/GC.D Also Singapore is actually a net creditor, see - mof.gov.sg/docs/default-s