... and we had all those doomsday articles about inflation. Now it's reversing, and... it's still bad. Economics discussion can't win, pessimism rules.
The US did grow its public debt by 50%, from 22 trillion to 34 trillion in... Four years. +12 trillion in... Four. Years.
The cost of servicing the US debt is going to be the most important government spending two years from now.
US debt has to be something like 135% of the GDP now (roughly 100% public and 35% foreign).
Care to share some of your optimism on these issues?
This has absolutely nothing to do with inflation arguments. But I'll engage anyway. Federal debt service costs as a percentage of GDP over time: https://fred.stlouisfed.org/series/FYOIGDA188S
There was indeed a very large increase in 2020-21 due to pandemic assistance programs. But the actual cost of the debt remains about half of what it was in the mid-80's under the Reagan economy (where the absolute size of the debt was smaller but the interest rates required to service it were higher).
I think we came out of the 80's just fine. We'll survive this too.
Comments
The US did grow its public debt by 50%, from 22 trillion to 34 trillion in... Four years. +12 trillion in... Four. Years.
The cost of servicing the US debt is going to be the most important government spending two years from now.
US debt has to be something like 135% of the GDP now (roughly 100% public and 35% foreign).
Care to share some of your optimism on these issues?
This has absolutely nothing to do with inflation arguments. But I'll engage anyway. Federal debt service costs as a percentage of GDP over time: https://fred.stlouisfed.org/series/FYOIGDA188S
There was indeed a very large increase in 2020-21 due to pandemic assistance programs. But the actual cost of the debt remains about half of what it was in the mid-80's under the Reagan economy (where the absolute size of the debt was smaller but the interest rates required to service it were higher).
I think we came out of the 80's just fine. We'll survive this too.