Are the US and UK currently in a state of war? đ€š
Above is the government debt as a % of gross domestic product for the USA and UK. As you can see, both countries recently had higher debt than GDP, it only happened three times for the UK, and only once for the US.
Every time government debt has been higher than GDP, it has been due to a major war in which the country was involved, so the government had to borrow to finance the war âïž
Today's ratios are slightly lower for the UK and slightly higher for the US. However, they are still well above the healthy norm.
đ When the general government debt as a percentage of GDP is rising, it indicates that the government's debt burden is increasing relative to the size of the economy
But such situations where debt exceeds GDP can only happen if something catastrophic happens for a long enough time: poor fiscal policies, financial crises, military conflicts, population collapse, high unemployment, etc đ
So which of these are relevant to the US and UK today?
