3 ms·
I guess a good measure of tipping point is when the interest payment begins to approach GDP. As things stand today the interest payments is ~$900B[1] and the GD
by vishnugupta 3y ago
I guess a good measure of tipping point is when the interest payment begins to approach GDP. As things stand today the interest payments is ~$900B[1] and the GDP is ~$25T[2]. Assuming the US govt collects ~10% of GDP as taxes it's making $2.5T. I'd say we are still quite a while away before the aforementioned tipping point.
Disclaimer: I'm not an economist and just made up this measure, happy to stand corrected by experts.
[1] https://fred.stlouisfed.org/series/A091RC1Q027SBEA https://fred.stlouisfed.org/series/A091RC1Q027SBEA
[2] https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?location...