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The U.S. national debt topped a record $22 trillion this week, less than a year after it crossed the $21 trillion mark, indicating a further deterioration in the nation’s finances.
The Peterson Foundation said the U.S. national debt has risen by $1 trillion in the past 11 months, calling it “the latest sign that our fiscal situation is not only unsustainable, but accelerating.”
“We already pay an average of $1 billion every day in interest on the debt, and will spend a staggering $7 trillion in interest costs over the next decade,” asserted Michael Peterson, CEO of the foundation. “In order to build the strong and stable future that we want for America, we must put our fiscal house in order and begin to manage our national debt.”
Economists agree the U.S. will suffer in the long run if the government fails to rein in the debt, but that day may still be a long way off.
The standard method of judging a nation’s fiscal health is to look at the level of debt relative to GDP — or the size of the economy. The ratio of publicly held debt-to-GDP is seen rising from about 78% in 2019 to 106% by 2029 and to as high as 193% by 2049 under current tax and spending policies, the Brookings Institution calculates in a new report.
While the interest payments on such a large debt would siphon off a lots of money the government could use for other things, it’s by no means clear how much the economy would suffer.
Japan has run huge debt-to-GDP ratios for years and it still has one of the strongest economies in the world. The country’s debt is around 236% of GDP.
The U.S. national debt soared in the aftermath of the 2007-2009 recession, accelerated again after the Trump tax cuts in 2017 and an increase in federal spending.
The hyphenated AOC has the solution: Tax some rich men or print some more money at the US Treasury. Spend billions more on the illegals invading the States. Continue to subsidize Planned Murderhood. Ship pallets of cash to the mullahs in Iran. Rein in the economy with more restrictive regulations. Don’t let the U.S. stay as the number one exporter of fossil fuels. Keep funding leftist ‘social justice’ mumbo-jumbo. Stay in Afghanistan for another 17 years.
Serious problem. Doubt that the bought-and-paid for political hacks in Congress will act responsibly – reduce and eliminate needless expenditures, take measures to enhance the U.S. economy.
Capricorn posted on November 15, 2019 at 09:15
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