Earlier quoted context omitted.
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You made a tiny mistake, you forgot the $800 billion for the military!
1.5 trillion next year!
U.S. debt-to-GDP ratio reaches 123%
71–80 of 233 posts
Re: U.S. debt-to-GDP ratio reaches 123%
#72Not an American, but I would argue that this level while little bit of a concern is not a huge issue for a superpower that borrows in its own currency and has the military and economic might to crush any party (sovereign or corporate) attempting move away from that system. You guys are too powerful.
Bingo! Any country borrowing in its own sovereign currency cannot default on debt in that currency, unless it actively decides to do so for political reasons.
Sure, but it can still have hyperinflation.
Re: U.S. debt-to-GDP ratio reaches 123%
#73Re: U.S. debt-to-GDP ratio reaches 123%
#74Earlier quoted context omitted.
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True that the government spends a lot on stuff that it shouldn't, but these examples don't make much of a case. Single-digit millions are not even pocket change here.
But they're still wastes of money, and based on the one-line description provided by the OP, they are rather absurd.
A few others I can think of:
Government insurance/funding for homes destroyed by natural disasters - why am I bailing out Florida homeowners when their home is destroyed by a hurricane? At best you get the first one free and then you're on your own after that.
Billions for highway construction that is not needed, which then costs more to maintain and results in more spending on cars, more deaths, higher costs for insurance, &c.
Various improper payments, billions in subsidies handed out, COVID-19 bailouts and forgiveness
Re: U.S. debt-to-GDP ratio reaches 123%
#75Re: U.S. debt-to-GDP ratio reaches 123%
#76Debt-to-GDP ratio is useful for comparing the debt loads of two countries, but not terribly useful in assessing the serviceability of debt for a single country. That is, suppose two countries both have $100B in debt. One of them is a small island nation; the other is a global superpower. Obviously the global superpower will be better able to handle that - dividing by GDP helps make that clear. However, this simple di…
But the doesn't come due. So long as you can cough up the interests.
There are short term and long term bonds.
Re: U.S. debt-to-GDP ratio reaches 123%
#77Earlier quoted context omitted.
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You made a tiny mistake, you forgot the $800 billion for the military!
No you forgot the wasted spending on Social Security, Medicaid, and other subsidies! See, other people can throw in snide remarks too.
There's room to debate military spending, but if you view the world as a dangerous place and that the US should not become isolationist, we have to spend the money and have equipment ready and capable whether that's in Europe or in Asia. Alternatively we can disband much of the military, stop paying for this stuff, withdraw from NATO, remove overseas bases in countries like Japan and South Korea, and leave the world to deal with its own problems.
Re: U.S. debt-to-GDP ratio reaches 123%
#78Earlier quoted context omitted.
Both can be true. The previous administration bailed out the unfunded pension funds of cities and state employees when they did Covid-19 bailouts despite it having nothing to do with Covid-19 and without requiring these local governments to properly fund these pensions moving forward. They bailed these pension programs out many times more than their financial support for restaurants they forced closed. Basically, Ame…
Bailing out workers is okay. They are, by definition, the people who have done the work. Bailing out the wealthy, or tax cuts for them is not. Unless you are very wealthy, you are a worker, and unless you experience a lottery winning type event, will never be very wealthy. > Basically, America has an economy that is buoyed by AI development and infrastructure spending right now but is poised to pop and the national d…
> forcing the US government to raise taxes.
it won't be the wealthy or cash-under-the-table classes paying these taxes, the increases will be in the income brackets. Which means paycheck receiving working stiffs ( middle and upper-middle class ) and retierees drawing from a 401k/IRA are the ones who will pay just like always.
Re: U.S. debt-to-GDP ratio reaches 123%
#79Earlier quoted context omitted.
True that the government spends a lot on stuff that it shouldn't, but these examples don't make much of a case. Single-digit millions are not even pocket change here.
But they're still wastes of money, and based on the one-line description provided by the OP, they are rather absurd. A few others I can think of: Government insurance/funding for homes destroyed by natural disasters - why am I bailing out Florida homeowners when their home is destroyed by a hurricane? At best you get the first one free and then you're on your own after that. Billions for highway construction that is…
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