Will Rogers phenomenon
The Will Rogers phenomenon is named after American actor and humorist Will Rogers. It's a phenomenon where a country's debt in comparison to its gross domestic product (GDP), or the amount of money made in a country each year, can change from one year to another.
In the short term, the country’s debt can seem to increase even though its GDP is also increasing. This is because when the GDP grows faster than the debt, the debt to GDP ratio can decrease. This means that the debt is getting smaller compared to the amount of money the country is making each year.
So, the Will Rogers phenomenon is when a country’s debt goes down even though its GDP goes up. It's named after Will Rogers because he once famously said: "I am more concerned with the return of my money than the return on my money."
In the short term, the country’s debt can seem to increase even though its GDP is also increasing. This is because when the GDP grows faster than the debt, the debt to GDP ratio can decrease. This means that the debt is getting smaller compared to the amount of money the country is making each year.
So, the Will Rogers phenomenon is when a country’s debt goes down even though its GDP goes up. It's named after Will Rogers because he once famously said: "I am more concerned with the return of my money than the return on my money."