August 9th, 2011, 10:08 am
wealth of a nation = NPV(Nation Assets) - NPV (Nation Debts) You can be extremely productive but if you hold a ton of external debts then, in practice, you are not very wealthy unless you rob foreigners (default)! - Domestic debt is another issue: Public vs. Private wealth. In Portugal, the Public sector ruined the economy by robing the private sector. The public sector in Portugal spends 50% of GDP.- Income Distribution is another problem: In the long-term income inequality reduces the potential value of assets (future cash flows of the economy - future GDP). This is also a huge problem in Portugal - which has an Oligarchic society.
Last edited by
BullBear on August 8th, 2011, 10:00 pm, edited 1 time in total.