Long Term VS. Short Term Debt Coverage
Traditional (politically correct) comparisons of government debt are stated in terms of debt to GDP. Gross Domestic Product and Net National Income are both income statement values which are subject to short term fluctuations in production efficiency, economic cycles, international trade, and currency valuation.
Analyzing government debt in terms of National Net Wealth recognizes the full potential of a country's resources to pay off its debts. Human and natural resources that have been underutilized can, in the longer term, be engaged to increase Net National Income. Likewise, tax revenues can be adjusted over time to draw on more or less private and corporate funds.
The table below looks at the multiple of Net National Wealth to Government Debt.
The table below and reports to follow are based on our own proprietary spreadsheets, compiling OECD information from their abandoned reports; as well as adding information from Springer, World Bank, and Credit Suisse. (See further comments on sources at:
https://www.worldwealth101.com/2018/11/the-new-wealth-metrics-are-old-wealth.html
* Non OECD members and certain OECD member calculations are based on estimates and projections due to the unavailability of reliable source data and should be verified through other sources.
| Net Wealth Times Government Debt |
| WorldWealth101.com |
Calculated and estimated using available 2014 through 2017 data
| Net | Government | Net Wealth |
| Wealth | Debt | Times |
| USD (mill) | USD (mill) | Government Debt |
 | Luxembourg | 3,387,758 | 18,675 | 181.4 |
 | Estonia | 215,062 | 5,855 | 36.7 |
 | Switzerland | 6,984,232 | 295,824 | 23.6 |
 | Czech Republic | 1,589,714 | 113,653 | 14.0 |
 | Norway | 2,694,277 | 196,111 | 13.7 |
 | Korea | 14,155,658 | 1,048,658 | 13.5 |
 | Chile | 1,018,685 | 79,951 | 12.7 |
 | Ireland | 3,438,344 | 277,725 | 12.4 |
 | Poland* | 1,267,342 | 113,145 | 11.2 |
 | Australia | 8,312,378 | 880,246 | 9.4 |
 | Sweden | 2,748,173 | 325,245 | 8.4 |
 | Mexico | 5,696,272 | 706,535 | 8.1 |
 | Denmark | 1,485,025 | 201,868 | 7.4 |
 | Germany | 17,727,988 | 2,765,665 | 6.4 |
 | Latvia | 105,586 | 16,513 | 6.4 |
 | New Zealand | 1,257,477 | 216,477 | 5.8 |
 | Finland | 1,149,981 | 199,972 | 5.8 |
 | Turkey* | 1,056,556 | 195,008 | 5.4 |
 | Netherlands | 3,790,587 | 712,014 | 5.3 |
 | Belgium | 3,288,177 | 673,996 | 4.9 |
 | Slovakia | 389,663 | 82,182 | 4.7 |
 | France | 16,372,798 | 3,546,668 | 4.6 |
 | Iceland* | 92,359 | 20,546 | 4.5 |
 | Austria | 2,376,801 | 551,245 | 4.3 |
 | UK | 13,474,095 | 3,292,220 | 4.1 |
 | Canada | 7,822,848 | 1,932,838 | 4.0 |
 | Brazil | 4,754,570 | 1,298,548 | 3.7 |
 | Lithuania | 257,107 | 70,715 | 3.6 |
 | Hungary | 458,302 | 132,261 | 3.5 |
 | Italy | 10,421,799 | 3,177,975 | 3.3 |
| Slovenia | 158,963 | 49,138 | 3.2 |
 | Spain | 5,932,828 | 1,877,284 | 3.2 |
 | Colombia* | 680,675 | 228,176 | 3.0 |
 | Israel | 886,729 | 329,789 | 2.7 |
 | Japan | 29,674,513 | 11,381,305 | 2.6 |
 | US | 62,892,129 | 27,171,145 | 2.3 |
 | Portugal | 644,365 | 413,557 | 1.6 |
 | Greece | 594,225 | 438,276 | 1.4 |
 | China* | 22,679,226 | 39,990,000 | 0.6 |
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