Quote:
Originally Posted by sunserrae1
Correct.
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No, you guys are getting debt and deficit confused.
Also. You have to COMPARE the debt to something. Debt as a percentage of GDP is lower in the US today than it was in 1950. It is almost half of what it was in 1946 compared to the size of the economy. In other words, the US economy has grown mush faster than it's debt for the past 70 years.
A company with one billion in assets can usually handle having 500 million in debt. A company with one billion in assets and more than one billion in debt is usually in credit trouble. In a world where most nations use a Keynesian spending stimulus the nations with the largest economies will often have the most debt. It turns out that the US debt/GDP ratio is close to the average of the G8 countries. The debt itself only looks preposterously high because the US GDP also looks preposterously out of whack.