3 ms·
Look at relative debt to GDP ratio rather than absolute numbers.
by sparkling 8y ago
Look at relative debt to GDP ratio rather than absolute numbers.
- paulpauper 8y agoAlso look at the interest paid on the debt, which is also low relative to historical levels
- mgkimsal 8y agoit's rising though, and will, I assume, rise faster as interest rates rise and the cost of the debt rises along with it (either immediately or in the near future). IIRC, current interest on debt is something like $400B, which is more than the budgets of many entire depts (dept of energy budget is ~$30B for example).
- tdb7893 8y agoDoes that metric work well on this timescale? I thought with how much debt we have spending will pretty much always lower the ratio in the short term.
- threeseed 8y agoNot sure why since I was talking about percentage change in deficit. And I am more concerned whether the tax cuts delivered an effective ROI.
- endorphone 8y agoIt's approaching 100%. As for the deficit, it's at 4% and rising to 4.7% in 2019. During full employment. During what can reasonably be called boomed times. Historic deficits. This isn't normal.