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If nominal GDP is rising percent per year, are such budget dificits sustainable forever?

April 26, 2017budget forever GDP nominal percent Rising sustainable year

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If nominal GDP is rising percent per year, are such budget dificits sustainable forever?

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It’s my opinion that budget deficits are not sustainable forever. Deficits simply mean the Govt is borrowing money to fiance spending. Excessive Govt spending restricts the money supply thus increasing the cost of credit to consumers and the tax burden on taxpaers.