US Government Debt Levels Are More Than 10 Times Annual Tax Receipts !! There is apparently little concern in Washington, DC as the annual deficit — for a single year, mind you — approaches one trillion dollars for the first time since the hit-the-panic-button days of the Great Recession. Except that now huge deficits are coming during great Trump economic times. Moreover, as the Congressional Budget Office has forecast, the debt load is expected to rise to 125 percent of GDP over the 20 years. That's higher than the US debt-to-GDP ratio during World War II. But perhaps the most striking aspect of the growing debt is the fact there really is no end in sight, and the US has no chance of ever paying off the debt. So what is the national debt as a percentage of the federal governments income? Income, in this case is the federal government's tax revenue. And it turns out by this measure, we're in uncharted waters. In fact, the national debt is now eleven times annual federal revenue. And as far as I can tell, that's the highest it's ever been. In 1945, the national debt was $251 billion, and tax receipts were $45 billion, meaning the national debt was 5.6 times tax revenue that year. Specifically, in 2018, the national debt ($21.4 trillion) was 10.9 times the size of annual tax receipts ($1.9 trillion). That's even higher than what it was during the dark days of the "stimulus" following the great recession. In 1981, on the other hand, the total debt load was only two-and-a-half times annual tax receipts. Total U.S. debt including all forms of government, state, local, financial and entitlement liabilities comes close to 2,000% of GDP, according to AB Bernstein. The biggest potential load comes from entitlements, but is being pressured from rising levels of federal government debt as well. The warnings about potential debt hazards come as the total federal debt outstanding has surged to $22.5 trillion. A debt reform advocate says now is the time for the U.S. to tackle the issue, before recession hits. Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level.
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
No comments:
Post a Comment