National Debt is it a national tragedy?

Question

What is the number anyone know?

Answer 1

I have an idea! How about we stop giving money to third world countries for one year! That way we won't be in debt but everyone will hate us twice as much! Problem solved!

Answer 2

No. It is still within a manageable level. It may seem astronomical, but when taken as a percentage of the size of our economy (about 60%), it is actually consistent with much of Europe and Japan.

If you want to see a real national tragedy, consider that our current unfunded liability for entitlements is around $50-70 trillion, more than 5 times our national debt.

I do however believe that our growing debt is a sign that our government spends too much.

Edit: Note to face. Actually, China is the third largest holder of our debt. US citizens hold more than half, followed by the Japanese, and then China.

And nobody can "call in" the debt, although they can refuse to purchase the new issues of our bonds that we use to pay off retired ones.

Answer 3

Debt repayment complicates our nation's monetary policy, which hinges on the buying and selling of federal bonds by the Federal Reserve.
The Fed buys such bonds with newly printed money to increase the money supply, and sells the bonds to the public for cash to reduce the money supply.
But, with no national debt, there would be no federal bonds to buy and sell, and the Fed would be more restricted in its ability to control inflation and other facets of U.S. monetary policy.

The size of the current national debt is just not an economic problem. By the end of the next fiscal year, the debt will have declined to about 31 percent of our nation's gross domestic product (GDP). Federal debt equaled 80 percent of GDP in 1950 and 46 percent in 1960.

it's becoming increasing apparent that the left is embracing debt repayment as a way to hoard that extra tax money in Washington until spending is politically safe again. The Democrats have adopted paying off the debt as their economic mantra precisely to short-circuit the political appeal of a major tax cut. But their rapidly escalating spending demands show that debt retirement is not really on their agenda.

Now that liberals hold sway in Congress, lawmakers routinely promise to cut spending (usually to win passage of tax increases). But the spending continues unchecked. The promise to pay down the debt could just be Lucy holding the football for Charlie Brown again.

One thing's for sure: The federal debt is not an economic problem. How ironic, then, that trying to pay it off may help create one.

Answer 4

It is a sin against the American people...do you realize the trillions spent on the " war"...could greatly reduce our debt? Way to go politicans of all parties. Of course their sacred earmarks continue, and trips all over the world to do their " fact finding" ( checking the cup size of teens around the world)

Answer 5

Unfortunately it is a number that is widely spread without understanding it at all. Helps to look at the number of nations that owe US money at the same time.

We come well into the black if you do.

People who want to hurt the U.S. never seem to want to mention that. Kind of sad.

Answer 6

not really. i'm in debt now but i have a college education and a house.

our debt is mainly held by china. but they can't afford to call it in, we support their economy. although i don't know how long we can continue to function in the red like this, but i'm no economist. the housing bubble and the energy issues are more immediate problems i think.

Answer 7

Yes, and it will be a tragedy for Capitalism. Jajajaja!

Answer 8

No.