Hope & Change: US national debt now exceeds GDP


According to the US Treasury, America has closed the books on 2011 with debt at an all time record of $15.22 trillion.

In economics, the debt-to-GDP ratio is one of the indicators of the health of an economy. It is the amount of national debt of a country as a percentage of its Gross Domestic Product (GDP). A low debt-to-GDP ratio indicates an economy that produces a large number of goods and services and probably profits that are high enough to pay back debts.
According to the CIA World Factbook, the 2010 public debt-to-GDP ratio in the US was 62.3% with a gross debt-to-GDP ratio of about 92.3%. At the end of 2011, our debt to GDP ratio is now officially over 100% — 100.3% to be exact.
The U.S. government anticipates total debt to balloon further to $16.7 trillion in fiscal year 2012 — from a “mere” $10 trillion in FY 2008.
Here’s a chart of federal debt to GDP, since the founding of the United States of America. The U.S. began with a substantial debt, the cost of the Revolutionary War​. Under Alexander Hamilton’s funding system the debt was paid off by 1840. Government debt has typically peaked after wars. It breached 30% of GDP after the Revolutionary War, the Civil War, and World War I. It breached 100% of GDP in World War II. The Obama administration’s 103% debt-to-GDP ratio is the first time the national debt has breached 100% of GDP in the absence of a major war.
Source: http://www.usgovernmentspending.com/debt_deficit_brief.php
How any American — Democrat or Republican; liberal, moderate or conservative; young or old; male or female; straight or gay; white, black, brown or yellow; Christian, Jewish, Muslim, or atheist — can want 4 more years of Obama is totally utterly beyond my comprehension.
~Eowyn

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0 responses to “Hope & Change: US national debt now exceeds GDP

  1. Unthinkable! Thank you, Dr. Eowyn, for giving us this historical mathematical perspective! I, too, cannot imagine in my wildest dreams, any American voting for Obama. God, the Blessed Mother, the angels and the saints, please help us!!!!

     
  2. But he inherented the mess from Boooosh!
    Those on the fed gravy train won’t care until their SS or whatever stops dry in its tracks.

     
  3. Remember, “change” can include having to use cigarettes and canned good as currency… the Democrats never exactly defined what they meant in Nov ’08.

     
  4. Yes GF I get that. Just made me think of my lib mom who gets SS and is thankful she is “as old as she is” because in the future, when gov can’t pay back your SS, she won’t be around. Told her the debt affects her grandkids yet it’s like as long as she gets her SS, Medicare right now, she’s happy.

     

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