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Tito_Mojito t1_ir7ze9s wrote

Overlay this with Presidents

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TA_faq43 t1_ir83n71 wrote

Overlay with GOP tax cuts. And add federal government revenue and expense numbers.

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77bagels77 t1_iradlr0 wrote

> Overlay with GOP tax cuts.

Overlay with Biden spending $800 billion dollars by executive order without Congress.

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corrado33 t1_ir86o3f wrote

Also hard to do because of the fact that a new president will often spend a few years (if not their first full term) recovering from the mistakes of the previous president.

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Sam_Fear t1_ir85q4v wrote

Note the real data ends in 2019. We are currently around 125-130%.

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ProfessorrFate t1_ir87fgw wrote

Correct. And lest anyone think it can’t go higher, Japan has a debt-gdp ratio of over 230% and they can manage their payments without problem. And lest anyone think their high debt leads to high interest rates, the BoJ benchmark rate is currently -.1% (yes, a negative interest rate — you currently pay Japan in order to carry their paper)

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ProfessorrFate t1_ir86dpq wrote

Federal debt is an odd beast, quite unlike any personal or corporate debt. Unlike every other debtor, the national debtor (i.e. the US government) also has the power to create money (via the Fed, usually) and also the power to set interest rates. And a lot of federal debt is actually owed to the debtor (yes, the federal government loans itself money). Furthermore, the debtor lives in perpetuity and can thus rollover repayment in perpetuity, as long as the interest payments to debt holders is made. And unlike private or corporate debtors, the federal government has the power to legally raise more money in order to make its payments.

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st4n13l t1_ire8ni0 wrote

What a terrible analysis. The graphic assumes that it will always climb even though historically you can see that this has never been the case. If someone had used this same flawed analysis in 1944 we'd presumably be at 500% debt to GDP currently.

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