Our national debt is just shy of 100% of GDP ($31 trillion), but we are not on the brink of a fiscal abyss. On the contrary, it is not unreasonable to think that Congress can manage some degree of spending control, and it is not the case that the economy faces a crushing burden of debt in any event, as Chart #13 shows. The true burden of debt is not the size of our national debt, but the cost of servicing that debt as a percent of our national income. Today that burden is significantly less than it was during the 1980s, mainly because interest rates are far lower than they were back then. If Congress exercises even modest restraint and the Fed doesn't have to raise interest rates (which they won't have to if inflation remains under control), then we can gradually reduce our deficits and the burden of our debt
All things considered, things don't look so bad at all!
-Calafia Beach Pundit, from this chart-filled post
Posts
No comments:
Post a Comment