I know it’s the great American way to live with tons of debt, but nobody anywhere balances their books like Washington. The Republicans are proud of their proposal to fix the economy, which will reduce the debt to GDP ratio to 72 percent by 2022.
Obama is promoting his plan from the bully pulpit, to get the ratio down to 73 percent. The current value is 75%. This data according to The Hill.
Greece has set the new standard in national debt, at 142% of GDP. The average across the European union states is 80%. This interactive map shows the entire continent is neck deep in red ink.
It would make everybody in Washington very happy if we could get ours down from the current 75%.
The average in the 1950’s in the U.S., after fighting two world wars, was less than 50%. In 1930 it was 16%. Before that it was even less except right after the Civil War.
Estonia’s debt to GDP ratio is only 7% and Bulgaria’s is 16%. We call them “third world economies” while gorging ourselves on monopoly money? If you take into account our annual $1 trillion deficit and the Fed’s $4 trillion printing money scheme, our GDP is around 1%. Factor in inflation and it’s negative.
Where are the serious plans to start paying off our debt? Who’s plan will get it down to 0% by 2030?
The numbskulls in DC are falling all over themselves trying to cut less than $100 billion out of our $1 trillion deficit. Who’s plan balances the budget with another $900 billion in cuts? Or starts paying down the debt with a total of $1.5 trillion in cuts per year?
The only way either party’s plan will do what they say and reduce the current debt to GDP ratio is if they cut on the order of $1.5 trillion per year or $15 trillion over ten years.
The Democrat’s plan cuts $2 trillion, and the GOP’s cuts $3 trillion over ten years – and they say the ratio will drop by 2022? That’s insane.
With people like that running the till in DC we’ll be Greece in a matter of years if not sooner. Their budgets won’t even pay for Obamacare much less pay off $50 billion in Post Office debt and $140 billion in debt owed by Fannie Mae and Freddie Mac.
Their $200 billion per year won’t even pay off current debt obligations much less reduce our $1 trillion annual deficit.
Who’s going to call them out?
