is the federal debt (national debt) increasing or decreasing relative to the GDP?

Answer 1

It is decreasing, when Bush first game into office, he ran huge deficits of about $400 billion and the economy was not doing very well, so the GDP was lower. Obviously, with the GDP higher now and the reported deficit lower, about $250 billion, the deficit is decreasing relative to the GDP.

However, what is not obvious to most including many teachers out there, is the fact that the government cheats, yes if you cheat on a test, the teacher is right there to gripe about it, which they should, but when the government cheats, most teachers could care less.

The government does not include "off budget items" when calculating the deficit. What are some off budget items? The Social Security trust fund, the money used to fight the war in Iraq, and other emergency funded items, like Hurricane Katrina.

What this means is the politicians don't include the money they loot from the Social Securty trust fund or the money spent in Iraq when they calculate the deficit, if they did, the deficit would be 300-400 billion dollars more, and then the deficit would be INCREASING as compared to the GDP.

All you young people will learn the hard way what this means. Your parents have allowed the government to spend the Social Security trust fund, your parents reaped the rewards, that is, the government spent the trust fund which stimulated the economy even more. At what expense, their children, that is, now with no trust fund, the children, when they grow up, will still have to pay tons of taxes for Social Security, there will be 75 million boomers on Social Security, plus pay back all the money your parents allowed the government to borrow throughout their adult lives, currently, 9 trillion dollars.

Good luck.

Answer 2

The US national debt is increasing as a percent of GDP under GW Bush. It is primarily a consequence of war time spending, and tax cuts.

Answer 3

The debt is increasing, because the US $ does not have as much value as it did even a year ago. Also, we owe China a bunch of money because that is the way we are paying for the Iraq war.

Answer 4

I am not from USA but your national debt is increasing. Specially now with the subprime problems you have, it would increase further. they are pumping more money into your system to supply the demand for money, they cut the rates to stimulate your economy, so the national debt will increase until the problem on the subprime subsides.

Answer 5

increasing
2006 66.1%
2007 67.5%
2008 67.9% projected

see graph at
http://zfacts.com/p/318.html

Answer 6

increasing

Answer 7

decreaseing