Expect to read more about US finances in the coming

In Reagan's day,  debt to GDP  (what we owe versus what we generate in national income, including but not limited to tax revenues, and, oddly enough, government spending) was 30% of GDP.  

Today,  we are spending more than what we create in terms of income,  104% of GDP more.  Think about it in terms of your personal situation.  You make $100,000 a year,  and this year,  you are going to spend $4,000 more than your total income  . . . .  but here is the kicker,  if your income mirrors the Government,  your total gross  includes money borrowed. 

In short,  that "104%" number is far from giving us an accurate picture of the growing dilemma (trust me) that faces this nation.  When our debt/GDP ratio was a modest 30%,  we could absorb the implicit discrepancies. But that alternative no longer works for those who see the end of the tunnel.  

Stay tuned.  This is the beginning of a discussion we all must have,  before the next national election.  

4 comments:

  1. Trump's budget balloons the deficit, cuts social security, Medicare.

    Medicare providers would absorb about $500 billion in cuts — a nearly 6 percent reduction. Some Social Security's disability program would have to re-enter the workforce under proposed changes to eligibility rules.

    And the millionaires and corps get a huge tax cut.

    You believed him... lol

    https://apnews.com/e50aec4820da4e30aed4bea9ff440e86/Trump&

    ReplyDelete
    Replies
    1. Not true. No cuts to Medicare or S.S. The AP has no credibility whatsoever and Trump's campaign promies included "no cuts to medicare or S.S."

      Slowing the rate of growth is not "cutting" anything.

      Delete
    2. And you believe a pathological liar. What does that say about you?

      Delete
    3. I have never supported Obama in any of his pathologies, his lying being the least of which.

      Delete