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debt to GDP ratio of at least 115%


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2020 Apr 27, 8:43pm   798 views  2 comments

by AD   ➕follow (1)   💰tip   ignore  

Coronavirus Aid Relief and Economic Security (CARES) act is about $2.1 trillion which includes about $500 billion in loan guarantees. There was another $450 billion passed.

So figure about $2.6 trillion passed in legislation for coronavirus aid and stimulus.

Then also account for about $400 billion deficit spending over the last 4 months not related to the coronavirus response.

Hence, that accounts for the $3 trillion deficit for present day. This is based on all the business loan money becoming bad debt.

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1   AD   2020 Apr 27, 8:43pm  

I suspect the debt to GDP ratio will be around 121% by end of this fiscal year. It reached 100% around 2012 and has increased steadily since.

The debt was around $22 trillion at end of fiscal year 2019. Add $3.5 trillion to that.

GDP is expected to be around $21 trillion for fiscal year 2020.

$25.5 trillion debt / $21 trillion GDP = 121%
2   AD   2020 Jun 24, 8:56pm  

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TrumpingTits says
So what?

Fuck 'starving the beast'. Let's kill it!

Best way to do that is to kill the government's ability to borrow.


The government considers a "cut" to the budget as not growing it at +3% annually. That is how they conduct accounting.

I say freeze spending (i.e., 0% increase) for at least 3 years and pay down the debt, and see what happens. Don't raise taxes.

Make adjustments at the end of the 3 years if needed.

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