Skip to main content

Economy Lessons - National Debt


From time to time an opinion comes up regarding state deficits, national debts etc. Here's the insight on how it is relevant and whether it does influence wealth of the country or not:

"The balance of produce and consumption may be constantly in favour of a nation, though what is called the balance of trade be generally against it. A nation may import to a greater value than it exports for half a century, perhaps, together; the gold and silver which comes into it during all this time, may be all immediately sent out of it; its circulating coin may gradually decay, different sorts of paper money being substituted in its place, and even the debts, too, which it contracts in the principal nations with whom it deals, may be gradually increasing; and yet its real wealth, the exchangeable value of the annual produce of its lands and labour, may, during the same period, have been increasing in a much greater proportion. The state of our North American colonies, and of the trade which they carried on with Great Britain, before the commencement of the present disturbances, {This paragraph was written in the year 1775.} may serve as a proof that this is by no means an impossible supposition." - Adam Smith, The Wealth of Nations

It is also interesting that Smith mentions North American colonies.

Comments

Popular posts from this blog

Scrum - Team Culture and Wall Manifesto

In the Scrum framework one of the key components is the wall and daily stand-up. In some organisations I worked with the whole concept of the wall is not accepted by many developers, because of the stand-up necessity and "time waste". Very often all that methodology is used for the sake of methodology and not to achieve what we actually do - adding or creating value to our customer (usually called "The Business"). I can understand frustration that is caused by the wall and stand-up process. From the software developer perspective it is really a waste of time for the following reasons: 1. In 95% of cases developers are head down working like hell delivering valuable outcomes that they are accountable for. Extra effort to go to the wall, staying there for 15-30 minutes and listening or not listening to what others were doing yesterday and will be doing tomorrow is annoying for them; 2. The mere fact of having to do something mandatory to do that looks like

Construction issues resolution in Sydney - part 17

It's been a while since  the last post In January 2016 the owner lodged an application to NCAT against owners corporation to fix three major defects: - waterproofing of large windows in the living room and bedroom which led to windows full replacement - bathroom drain fix - planterbox fix The owners corporation didn't come to mediation and tribunal ordered to fix all defects within 2 months (the deadline was 8th July 2016). The owners corporation as usual didn't rush to comply with the order regarding two items: bathroom and planterbox. The windows works started end of April 2016. At the same time owners corporation decided to check whether it's a warranty and original builder should fix the issues. That was also related to the fact that the variation was submitted by the current contractor who started fixing the defect. So the owners corporation stopped all works in the middle and went off for a month to "make decision". The decision was mad

How strata owners corporation "solves" problems or Construction issues resolution in Sydney - Part 16

Almost 8 months passed from the time of previous post and here's how the owners corporations activities looked like to "resolve" the defects/problems: 1. Independent inspection report was ordered and completed 1st June 2015. The report confirmed the defects that were known to owners corporation already. It should be noted that in the period between December 2014 and June 2015 the only attempts by owners corporation to resolve the issues were to convince the lot owner that it's the owner's personal responsibility. Therefore half a year gone with a couple of meetings only, because people were "on holidays", "busy" etc. 2. Between 3rd July 2015 and end of July 2015 the strata manager spent "contacting the builders for quotes". Until owner called the strata manager nothing have happend. 3. By the end of August 2015 all quotes were in place. The meeting of all owners was set up for the 7th October! Because as usual "holid