Quote:
Originally Posted by Normal
It cost about 2.5% of GDP to service the US debt. The real problem is adding 1 trillion to that debt every 100 days or the equivalence of 10%annually with the current debt at 34 trillion. This can’t be sustained. The US government wins out when we have inflation, because yesterday’s dollar doesn’t cost as much as today’s. It hits the people hard, but politicians bask in it.
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I think GDP is a largely irrelevant metric. Really its our government's tax revenue that matters. That amount that we the people have agreed upon to pay them annually, under the assumption that they will spend wisely. I know many economists and politicians use GDP often, but I think they do so to downplay the seriousness of our financial situation. Its sort of like if a family member going to the bank for a loan has tons of debt, but tells the bank not to worry because their siblings and cousins and aunts and uncles, etc. have lots of money. The bank cares only about the borrowers (governments) assets, and cares not for the rest of his family's financial situation (the taxpayers). Unless of course the other family members agree to co-sign the loan (all of the US citizens agree to pay WAY more in taxes).
...I am open to another train of thought though regarding 'GDP's value' in US debt discussions, if you care to discuss.
Yes, I agree. The gov wants, ...needs, inflation. But our debt is now so big, and still growing due to the unending handouts from this administration, that I don't see how even mass inflation makes the numbers work out.