Gustaf
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Political Matrix
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« on: January 20, 2013, 05:30:23 PM » |
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Argh. There is so much nonsense about debt going around.
Most households are in debt everywhere and they should be. Most people buy houses at some point and then go into debt. There is nothing wrong with it and it's not a problem.
A studio apartment in Stockholm would cost about 1 million SEK. The average wage is something like 300 000 SEK/year. So, here you would likely take on something like 300% of your annual income in debt if you get an apartment. I'm sure the numbers must be somewhat similar in the US.
Also, debt which you can pay off and which is backed by assets is not much of a problem. Sweden, for example, has a gross debt of something like 30 or 40% of GDP last time I checked, but our net debt is 0 or even negative, IIRC. The situation is worse for countries that have nothing to back up their debt with.
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