I would like to try something different and this thread not turn into a who spent more Republicans or Democrats fiasco and focus more on what does all this debt mean for the future of the country? Stagnation like Japan? Inflation? Or it doesn’t matter how high it goes? The trajectory of the graph is terrifying for someone like me who is good at math but not as political savy as some on here who might see it differently.
Because looking at the graph it’s pretty clear that things didn’t go completely nuts until the financial crisis around 2007 and the recent spending hasn’t been put into this figure. I am just wandering what everyones thoughts are at were this goes? I personally think it’s too late to turn back the clock and we are headed for inflation and then stagnation at best.
Thoughts? Again plz try to refrain from the usual Trump did this or Obama did that it goes no where it really kicked off during the financial crisis of 07 and whether one agrees with the spending under Bush Jr at the end of his term or Obama and Trump thereafter we are were we are.
I have looked at these numbers as well, and clearly one of the factors was that the Baby Boom generation started reaching retirement age in 2008, and with life expectancy going from about 60 years to 80 years the system was not able to handle that. To be fair COVID has accelerated this exponentially. When you consider ALL the COVID spending along with the lost revenue of many businesses and jobs that were decimated, that by itself will likely end up being 10 trillion dollars.
Well, normally, people would charge us higher interest rates and it would be all over. But now we are just printing it so who knows. The realistic outcome, my guess is. Eventually we will have to either raise interest rates or face high inflation. Problem is, doing so would crush us on debt service so we aren’t going to want to raise them to stave off inflation.
Tax the ever loving ■■■■ out of the rich. That’s an idea that is wildly popular with Americans. Make America great again like it was in the 50’s minus the segregation and misogyny with 90% upper marginal tax rates, generous social programs and low cost education like the Boomers grew up with before they pulled the ladder up.
Wild inflation has been predicted for a long time, it hasn’t shown any signs of materializing. I’m not sure I fully understand MMT but it’s proving to be a lot more accurate than the Friedman types.
Debt started exploding during the 80’s. That is when the tax burden was shifted to the working poor and middle class and it’s been trying to keep a lid on debt ever since, with little success.
I’m not really interested in any “cut spending” takes unless it’s at the bloated military, but we have to recognize that that spending is the closets thing we have to a jobs program and it will reduce GDP if not replaced. Across the board cuts are ideological and dumb. Why cut 10% from a successful program just because?
Here’s an illustration of legislative priorities based on recent legislation.