This is for the USA economy but I imagine some fundamentals hold true for the Australian economy. What are people's thoughts? I was surprised at the middle class not actually paying tax. And that tax rates make no change to the percentage of tax the government can collect.
usa debt or usa government is unique in many ways that other government are not privileged too. no.1 the currency. US Dollar is still the king because many "industry" solely trade in us dollar or as it called it the Reserve currency (mainly cause of oil). this mean regardless or (mainly because) how the US market/economy/government is doing, its the the most kept/desire/needed or used currency. this might change, but not likely in the "foreseeable future" no.2 guns. (hypothetical america) got the biggest guns in the world and "best" allies. its like me asking you to collect the debt from the most powerful mafia you know. if he is kind he might pay you back. if he dont. what are you going to do about it ??(and this is a debt cant afford to pay back ) government debt = total debt divided by number of citizen. you now know how much each citizen owes if we were to pay back the debt the government has. (funny how things works). government spent tax payer's money, incurs debt. tax payers pays/holds the debt. subsidies too.. if you look up who benefits and dont benefits from subsidies and why some people think it should be completely eliminated.. interesting world we live in.
The world economy is not out of the woods, the US I believe is a basket case, they were printing like mad. It could fall apart, and there is a lot looking to knock US from it's perch. Bad thing is, it effects us all now.
Who is this guy? Some weird stuff around unfunded future obligations. He says the govt has to service debt today that it has not yet incurred.
