Posted on 01/20/2020 10:20:49 AM PST by Tolerance Sucks Rocks
The decade that just ended saw a period of uninterrupted economic growth. In the decade to come, we'll pay for squandering it.
Since the so-called Great Recession officially ended in the third quarter of 2009, the United States has enjoyed 42 consecutive quarters of solid if unspectacular economic growth. That's the longest run of uninterrupted growth since government economists began tracking the business cycle in the 1850s, far outpacing the average economic expansion of 18 months. Employment has increased by 12 percent, the jobless rate reached record lows, and America's gross domestic product (GDP) has increased by more than 25 percent.
It has been, by almost any measure, one of the best times in American history. Almost.
Hanging over this decade of good news is the gloom of a missed opportunity. After piling up trillions of dollars in deficit spending during the last recession, the federal government took some modest steps towards reducing that red ink during the middle years of the 2010s. But after Republicans took full control in 2017, spending skyrocketed and the deficit inflated again.
Since Trump was inaugurated, Washington has added $4.7 trillion to the national debtalmost entirely the result of a gigantic spending binge, but with a small assist from the 2017 tax cuts, which reduced revenues without offsetting spending cuts.
Now, more than a decade after the last recession ended, the United States is carrying a record amount of debt: more than $23 trillion. The country is on track to add more than $1 trillion to that total in every year of the coming decade, with old age entitlements ramping up as Baby Boomers retire and the country as a whole ages.
(Excerpt) Read more at reason.com ...
We didn't have the economy we have now in the mid 2010s. With the economy doing the best it's done in decades we should be paying down debt, not running it up to the tune of a trillion dollars a year or more. If the economy goes into a downturn you could see that deficit double or triple.
The deficit is a major threat to American prosperity in the long term. Democrats and their Socialist handlers are an immediate danger to the survival of the United States as a free country. As much as I want the budget cut and balanced, that has to be deferred until our safety from these minions of pure evil is secured.
Brother I’m with you.
It’s all fiscal insanity.
What I don’t get it that Japan is operating at 200 percent plus debt to GDP while we’re “only’ at 100.
When does it really start to destroy a country?
300 percent? 400 percent?
Invest in Vangaard's TIPS fund. Treasury Inflation-Protected Securities. VAIPX and VIPSX.
True, that.
Well, the South China Morning Post says China’s debt to GDP is 300 percent.
So, the 3 largest economies all have debt to GDP ratio in the 3 digits. But it looks like we, the #1 economy in terms of GDP us relatively better than #2 abd #3 in terms of debt.
That’s an extremely good question.
I’m no expert, but, I’d think that other factors would be GDP growth, the amount of private debt, the amount of debt going to “investments” (actual useful infrastructure), etc.), and, debt to assets ratio. Other FReepers may think of more factors.
365% TCMDO to GDP is when we reach the tipping point. We went there in 2007/2008. The PIIGS all hit it around the same time.
The problem is Congress. I seem to recall the swamp that is the GOP refused right from the start to hand Trump a credible budget. In fact to get his signature corporate tax cuts he had to compromise with the swill they gave him. They might have his back now, but they are still the swamp, who didn’t even have an Obama care repeal ready. They couldn’t even manage to defund Planned Parenthood when they had the chance. Theses guys are slaves to the status quo and in some senses marginally better than Democrats. Trump has had to drag their sorry asses across the finish line time and time again.
Thing is betting against the United States is hazardous.
I was curious about Japan so looked at some graphs. Since 1995 US per capita GDP has gone up from $40,000 to $60,000. Japan has stayed the SAME at around $38,000! The debt might not be solely to blame, but PER CAPITA takes into account Japan’s population loss, so its a bad number.
The entire government resigns. All debts cancelled. New governments form. It’s the only way now.
Re: “What I dont get is that Japan is operating at 200 percent plus debt to GDP while were only at 100.”
One factor is that Japan has a (relatively) higher savings rate, and a majority of people “invest” most or all of their savings in Japanese sovereign bonds.
Do you know what the interest rate on the Japanese 10 Year Bond is paying?
(Minus!) -0.006%
In other words, a majority of Japanese “savers” absorb the entire inflation rate (less than 1%), and they PAY the Japanese government a tiny percentage to hold their money!
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