this post was submitted on 04 Jun 2024
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UK Politics

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General Discussion for politics in the UK.
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[–] frankPodmore@slrpnk.net 3 points 5 months ago (1 children)

I think it those economic impacts that people want to avoid, though.

[–] futatorius@lemm.ee 3 points 5 months ago

The consideration should be the cost of debt servicing relative to the size of the economy or the state budget, not some arbirtrary number auch as debt size as percent of GDP. As you say, what matters is the effect. If it's cheap to borrow money, and you're spending that money on something such as infrastructure investment with a positive ROI and a good multiplier effect, then it makes sense to borrow.