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To: cincinnati65
I understand what you're saying... but I think my comparison is more accurate than you do. Let's look at it this way. Right now, a family with good credit making 100k a year can likely qualify for a 30 loan for 500,000. They'll spend roughly 859k over the 30 years.

They'll have no guarantee the property will be worth what they bought it for after 30 years. They have no guarantee that they will continue to make 100k per year. And people enter into these by the thousands every day.... with no real plan to ever pay it off, manage the downside, recoup the 350k in interest they'll pay etc. I'd wager there are many here who fit that description. But if the government has debt that totals one years worth of GDP the same are freaked out about it.

It's all a matter of perspective I guess. Individual bankruptcy just seems more acceptable than the government doing it. And that's a fundamental character flaw.

34 posted on 04/08/2016 11:40:13 AM PDT by kjam22 (America need forgiveness from God..... even if Donald Trump doesn't)
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To: kjam22
Let's try again.

I'm alone. No wife, no family. I work a job $30,000 a year to make widgets. My quota is 100 widgets per day, and widgets sell for $100. Over the course of a year, I'll make 25,000 widgets (250 working days X 100), with a total retail price of $2,500,000.

My GDP is $2,500,000, my income is still only $30,000.

With an income of $30,000, NO ONE will loan me $2,500,000 to buy a house, but that's my personal GDP, so according to you, there's no problem with me borrowing that much.

The national debt should not be compared to GDP -- it should be compared to revenue only, which is a percentage of a percentage of GDP.

35 posted on 04/08/2016 11:52:02 AM PDT by cincinnati65
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