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You missed what the US actually does: it grows its economy until the debt is insignificant. The US has never (in modern times) substantially reduced its debt le
by dkjaudyeqooe 3y ago
You missed what the US actually does: it grows its economy until the debt is insignificant. The US has never (in modern times) substantially reduced its debt level in dollar terms.
- quickthrower2 3y agoSo the US is like a Google or Amazon, always growing? And so it can take on more debt.
- kortex 3y agoI get that, but isn't the debt/GDP ratio in general also growing?
- dkjaudyeqooe 3y agoYes, at the moment, but the trick is to grow your economy faster than your debt. The US has managed to do that in the long term.
- BXlnt2EachOther 3y agoyes, it has doubled from 65% of GDP to 130% of GDP in the last 15 years (GFC and pandemic). Click 50Y or Max time scales for more history: https://tradingeconomics.com/united-states/government-debt-to-gdp https://tradingeconomics.com/united-states/government-debt-t... This has been growing faster than CBO projections, though obviously the last few years were unique (hopefully). Found a graph from the 2015 CBO report that is still in a wikipedia article that projected we'd be at about 75% debt/GDP now[1]. Another article from 2020 as pandemic aid spending was going out warned we could hit 106% by this year. IIUC there's not a line that we must not cross, but the level, the rate, and the can-kicking on all this debt spending, and debt in general, worries me (even as someone who leans to the left and supports big government projects). [1] https://commons.wikimedia.org/wiki/File:FederalDebt1940to2015.svg https://commons.wikimedia.org/wiki/File:FederalDebt1940to201...