Thursday, October 15, 2020

Fun with numbers...........................

 NPR’s “Weekend Edition” tried to illustrate the US national debt by saying, “If you stack up 14.3 trillion dollar bills, the pile would stretch to the moon and back twice.”

That does not help. Indeed, it is triply unhelpful, since most of us lack an intuitive grasp either of how far away the moon is or of how many dollar bills there are to the yard, and even if we had both we would still be stuck with the question of whether $14.3tn was a worryingly large debt or not.

More useful is to think of the debt as a sum per person. At the end of 2019, US federal debt was nearly $23tn, which is about $70,000 per US resident. I don’t know whether that is more or less alarming than trying to measure it out in trips to the moon but it is certainly vastly more informative.

-Tim Harford, as lifted from here

No comments:

Post a Comment