4 ms·
Could someone please explain why this graph is not as problematic as it first appears: https://wtfhappenedin1971home.files.wordpress.com/2020/06/eifme9yu0ae8xnz
by jayceedenton 5y ago
Could someone please explain why this graph is not as problematic as it first appears: https://wtfhappenedin1971home.files.wordpress.com/2020/06/eifme9yu0ae8xnz.jpg https://wtfhappenedin1971home.files.wordpress.com/2020/06/ei... ?
- sb057 5y ago1) Compressed X-axis makes it look visually worse than most graphs. 2) A combination of inflation and nominal GDP growth has resulted in the effects not being as bad as it otherwise would be. (Modern Monetary Theory essentially argues all three are intrinsically linked.) 3) It actually is fairly problematic. Rising debt (especially since 2009) has largely been possible because of the Fed's near-continuous lowering of interest rates. Faced with the prospect of those rates rising, it's questionable where the finances will come from. https://thehill.com/opinion/finance/591226-can-our-nation-afford-higher-interest-rates-with-the-current-national-debt https://thehill.com/opinion/finance/591226-can-our-nation-af...
- dwater 5y agoIt has a linear scale not a log scale, and it's also not relative to anything, such as GDP. Here's an alternative that shows debt relative to GDP: https://en.wikipedia.org/wiki/File:Public_debt_percent_of_GDP.pdf https://en.wikipedia.org/wiki/File:Public_debt_percent_of_GD...
- jayceedenton 5y agoGreat point. This indicates the real change happened in 1917.