I ask you to watch the national debt clock for a couple of minutes and you will see it ticks up $1 Million about every 25 seconds. http://www.usdebtclock.org/
Lets round it out and say $2.25 Million per minute. That equates to $600 Billion per half-year or $1.2Trillion per year.
Then look at the fact that we have borrowed $1.1 Trillion since August, the time of our last debt ceiling increase (Balance of debt $14.29 Trillion up to $15.4 Trillion today). Let’s call that six months (Sept – to Feb). Do a simple calculation and you find in the months following the budget debate we borrowed at a pace almost twice as fast as we are today…
The good news is they slowed it down from $5 Million to $2.25 million per minute.
However, we still reach our current debt ceiling of $16.2 Trillion within 12 months and that’s if we stay at the slower borrowing pace of $2.25 Million per minute… Kind of staggering numbers aren’t they???
We may have seen our debt at 120% of GDP at the end of WWII and feel it to be sufficient evidence of our current debt level, about 102%, to be acceptable. Yet then, unlike now, we had an unborn economy just blossoming into what we know today as consumerism. We also were a younger society with minimal debt per household. We experienced a baby boom and society flourished.
GDP was just under $300 Billion in 1950. Today it is $15 Trillion or 50 times larger!!! Given our massive increases in productivity (reducing labor demand), our aging society, our massive household indebtedness, and a diminishing supply of vital resources among other critical variables; how can we expect to grow our economy 50 times over in the next 60 years? All in hopes of growing out of our debt accumulated today…
That would mean we would have a GDP of $750 Trillion…. I’ll stand on not possible.
And not to mention over the next 80 years our country has a minimum estimated $50 Trillion of unfunded Social Security and Medicaid/Care liabilities for the tax payer to fund.
We must be realistic about what we can afford in our very near future. To hope we can grow out of our debt as we did after WWII is a mistake.