Where is most of this spent?
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The U.S. National Debt is Rising by $1T About Every 100 Days
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Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#22Where is most of this spent?
Social Security, Medicare/Medicaid, Interest, Defense in approximately that order.
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#23Earlier quoted context omitted.
You may be getting richer in dollar denominated value, and you may even be getting richer in purchasing power for assets right now, but if asset prices (say housing) are increasing 10%-15% year on year can you maintain that 'getting richer'? Also from the sounds of it, and the fact you are both on HN and doing well in the market right now, implies you are in a pretty good position, compared to the general population.…
> you can be assured that there are many people above you in the chain getting much bigger pieces This bothers a lot of people but it doesn't bother me. I see it so often that it feels like a flamebait tactic to elicit envy.
What about the people further down the chain getting less and less? Presumably that doesn't bother you either.
It seems like you weren't really asking an objective question of 'why this is happening' but rather a subjective one of 'why should I care, I'm doing fine'
It's a valid question, why should you care, if you are doing well in this moment. I can't answer it for you.
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#24Where is most of this spent?
Interest payments?
Interest is on its way to be the largest category of spending by 2051. This assumes rates never go above 4%. Every 1% increase is basically equivalent to adding another defense department.
https://www.crfb.org/blogs/interest-costs-will-grow-fastest-...
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#25Earlier quoted context omitted.
You may be getting richer in dollar denominated value, and you may even be getting richer in purchasing power for assets right now, but if asset prices (say housing) are increasing 10%-15% year on year can you maintain that 'getting richer'? Also from the sounds of it, and the fact you are both on HN and doing well in the market right now, implies you are in a pretty good position, compared to the general population.…
> you can be assured that there are many people above you in the chain getting much bigger pieces This bothers a lot of people but it doesn't bother me. I see it so often that it feels like a flamebait tactic to elicit envy.
"Why don't other people care about my safety," and "Why should I care about other peoples' safety," are your questions.
The second one answers the first.
You can't have both - either you're part of a community, or you're on your own.
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#26I can't square the incredible performance of the market and health of the US economy with the deficit. If times are so good then why aren't we taking advantage of the opportunity to pay down some debt or get control of our deficit? I don't even want to think about what happens in a crisis.
Why didn't Madoff just slow down to pay off the ponzi during the good times?
Why not print money and buy the Magnificent 7 stock, sell over time and pay off national debt!
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#27Earlier quoted context omitted.
> you can be assured that there are many people above you in the chain getting much bigger pieces This bothers a lot of people but it doesn't bother me. I see it so often that it feels like a flamebait tactic to elicit envy.
Are there any wealth redistribution efforts that bother you? Like perhaps student debt forgiveness? Or welfare for single mothers?
None of the "wealth redistribution" efforts that are in effect bother me.
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#28Where is most of this spent?
Social Security, Medicare/Medicaid, Interest, Defense in approximately that order.
Otherwise known as entitlements, debt, and the military industrial complex
All of the items listed should be spun off into their own respective organizations separate of the federal government IMHO
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#29Earlier quoted context omitted.
Because this debt is largely meaningless - except as a political tool. All countries have debt to the point that it’s basically a big web. What really matters is the trust in the financial system behind the debt. Do other countries believe that the US can take out more debt in good faith? If yes, then this is fine. In individual terms, this is much like having a mortgage. It’s a massive number, much larger than your…
If that's the case doesn't it still make sense to try and reduce debt? Due to unforeseen circumstances? Going by your metaphor we could say the possibility of the industry you work in becoming a lot less lucrative due to technological advances, or macroeconomic changes like jobs going overseas -- this isn't an abstract threat! It's happened before and will happen again!
Yes and no.
I'm getting into opinion territory now. Largely, the USA is such a dominate world power that it running into trouble on its debt would mean global repercussions. That unforeseen circumstance would have rippling effect around the world. At which point, it wouldn't really matter if the USA was affected. Everybody else would be affected too.
Re: The U.S. National Debt is Rising by $1T About Every 100 Days
#30Earlier quoted context omitted.
If that's the case doesn't it still make sense to try and reduce debt? Due to unforeseen circumstances? Going by your metaphor we could say the possibility of the industry you work in becoming a lot less lucrative due to technological advances, or macroeconomic changes like jobs going overseas -- this isn't an abstract threat! It's happened before and will happen again!
Yes and no. I'm getting into opinion territory now. Largely, the USA is such a dominate world power that it running into trouble on its debt would mean global repercussions. That unforeseen circumstance would have rippling effect around the world. At which point, it wouldn't really matter if the USA was affected. Everybody else would be affected too.
Yep, totally get that possibility. We've seen it with the 08 financial crisis, COVID (esp. wrt money printing), and even down to more mundane things like nimbyism + pension underfunding (traps that many/most other developed nations have fallen into).
Still it makes me squeamish and makes me want to point out that just because we can't conceive of a threat unique to our particular position doesn't mean that one doesn't exist! But a lot of what drives me to think that is almost certainly just my own risk intolerant disposition, which again comes down to opinion.