As you all know the criteria used to assess the impact of public debt in an economy is generally given its report on gross domestic product. Simplistically it is a bit like comparing an individual's debt to his annual salary. But if the individual is fired what happens? Since her income is suddenly clear, the only way to assess the solvency of the subject is to relate his debt to his heritage.
The GDP is not fixed, can vary in both positive and negative and may have collapsed!
This means that the debt ratio does not grow only if the debt is growing but it is shrinking GDP and GDP highly unstable because it is a measure also subject to sudden collapses!
So the debt ratio is a measure really reliable?
Who guarantees the solvency of the state if not the citizens? It is therefore not the solvency of citizens should always refer to obtain reliable estimates of?
All this to say that although the debt ratio is the Italian twice that of the United States, you might be surprised to find that the debt per capita is almost equal!
All this without considering the level of indebtedness of private citizens is much lower in the Italian case! Meditate
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