The numbers:
Total US debt: $8.487 trillion
Total US Population: 300 million
Total US GDP: $11.75 trillion
Total Federal Receipts (how much is collected): $2.145 trillion
Interest on Federal Debt: $184 billion
Therefore, the average per person numbers look like this:
Total debt: $28,000
Total receipts: $7,180
Total Interest: $613
So, lets get this straight. This is the equivalent to having a loan for $28,000, having an income of $7,180, and paying annual interest only of $613 (2%). Considering the average GDP growth is 3-4%, why would this situation be scary for anyone? Seems like people borrow money for their homes at much higher interest rates at more than 4 times their income without giving it a second thought.
The reality is the US spends more than they take in, meaning they have to constantly borrow, so as the GDP grows, so does the debt. But the current debt is far from overwhelming.
In light of these plain facts, explain why you think its concerning.
2006-08-17
19:41:35
·
6 answers
·
asked by
Marcello
2
in
Economics