http://www.economicshelp.org/blog/economics/how-accurate-are-government-debt-statistics/ Economics Blog - current events and economics essays Thu, 11 Mar 2010 12:11:41 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.economicshelp.org/blog/economics/how-accurate-are-government-debt-statistics/comment-page-1/#comment-1345 shuhuraab Tue, 26 Aug 2008 10:55:05 +0000 http://www.economicshelp.org/blog/?p=642#comment-1345 you should be thank full for it you should be thank full for it

]]> http://www.economicshelp.org/blog/economics/how-accurate-are-government-debt-statistics/comment-page-1/#comment-1336 tejvan Sat, 23 Aug 2008 12:58:24 +0000 http://www.economicshelp.org/blog/?p=642#comment-1336 Thanks for Comment, Robert Thanks for Comment, Robert

]]> http://www.economicshelp.org/blog/economics/how-accurate-are-government-debt-statistics/comment-page-1/#comment-1335 robert mcdowell Sat, 23 Aug 2008 11:01:10 +0000 http://www.economicshelp.org/blog/?p=642#comment-1335 National Debt is a Central Government number for outstanding Government bonds, which are securities of more than 1 year maturity i.e. excluding money market treasury bills, which are of less than 1 year maturity. National Debt may in some countries exclude local government debt and Government guaranteed agency debt. Within National Debt a large percentage (typically 15% - 30%) represents funds owed by one arm of government to another i.e. money owed by government to itself, called non-tradable government bonds. The idea of adding future liabilities such as public pensions to a current National Debt figure is silly. Public pensions are funded out of current tax income and have a low net cost. All Government spending has a same year net cost of 70% or less, and much less over 2-4 years. In the case of pensions, government comfortably funds this out of all tax income from all pensioners i.e. rich pensioners pay for poor pensioners and the pension is akin to a tax discount for the 70% of pensioners who pay tax and who are the wealthiest household segment. Economists should never look at these questions in merely a two-dimensional way. This, however, is what the Institute for Fiscal Studies may be accused of - playing politics, not economics! National Debt is a Central Government number for outstanding Government bonds, which are securities of more than 1 year maturity i.e. excluding money market treasury bills, which are of less than 1 year maturity. National Debt may in some countries exclude local government debt and Government guaranteed agency debt. Within National Debt a large percentage (typically 15% – 30%) represents funds owed by one arm of government to another i.e. money owed by government to itself, called non-tradable government bonds. The idea of adding future liabilities such as public pensions to a current National Debt figure is silly. Public pensions are funded out of current tax income and have a low net cost. All Government spending has a same year net cost of 70% or less, and much less over 2-4 years. In the case of pensions, government comfortably funds this out of all tax income from all pensioners i.e. rich pensioners pay for poor pensioners and the pension is akin to a tax discount for the 70% of pensioners who pay tax and who are the wealthiest household segment. Economists should never look at these questions in merely a two-dimensional way. This, however, is what the Institute for Fiscal Studies may be accused of – playing politics, not economics!

]]>