Current Events > The US debt is now projected to be larger than the US economy

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Tmaster148
10/08/20 9:12:24 PM
#1:


https://www.cnn.com/2020/10/08/economy/deficit-debt-pandemic-cbo/index.html

As the United States continues its struggle with the pandemic-induced economic recession and a sputtering recovery, the country's burgeoning debt is not anyone's top concern these days.

Even deficit hawks are urging a dysfunctional Washington and a chaotic White House to approve another round of badly needed stimulus to the tune of trillions.
"The US federal budget is on an unsustainable path, has been for some time," Federal Reserve Chairman Jerome Powell said this week. But, Powell added, "This is not the time to give priority to those concerns."

However, when the country eventually pulls out of its current health and economic crises, Americans will be left with a debt hangover.

On Thursday, the Congressional Budget Office estimated that for fiscal year 2020, which ended September 30, the US deficit hit $3.13 trillion -- or 15.2% of GDP -- thanks to the chasm between what the country spent ($6.55 trillion) and what it took in ($3.42 trillion) for the year.

As a share of the economy, the estimated 2020 deficit is more than triple what the annual deficit was in 2019. And it's the highest it has been since just after World War II.
The reason for the huge year-over-year jump is simple: Starting this spring, the federal government spent more than $4 trillion to help stem the economic pain to workers and businesses caused by sudden and widespread business shutdowns. And most people agree more money will need to be spent until the White House manages to get the Covid-19 crisis under control.

The Treasury Department won't put out final numbers for fiscal year 2020 until later this month. But if the CBO's estimates are on the mark, the country's total debt owed to investors -- which is essentially the sum of annual deficits that have accrued over the years -- will have outpaced the size of the economy, coming in at nearly 102% of GDP, according to calculations from the Committee for a Responsible Federal Budget.

The debt hasn't been that high since 1946, when the federal debt was 106.1% of GDP.

"Debt is the size of the economy today, and soon it will be larger than any time in history," CRFB president Maya MacGuineas said.

The problem with such high debt levels going forward is that they will increasingly constrain what the government can do to meet the country's needs.

Spending is projected to continue rising and is far outpacing revenue. And interest payments alone on the debt -- even if rates remain low -- will consume an ever-growing share of tax dollars.

Given the risks of future disruptions, like a pandemic, a debt load that already is outpacing economic growth puts the country at greater risk of a fiscal crisis, which in turn would require sharp cuts to the services and benefits on which Americans rely.

"There is no set tipping point at which a fiscal crisis becomes likely or imminent, nor is there an identifiable point at which interest costs as a percentage of GDP become unsustainable," CBO director Phillip Swagel said last month. "But as the debt grows, the risks become greater."

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REMercsChamp
10/08/20 9:12:55 PM
#2:


China will pay for it

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Colorahdo
10/08/20 9:13:16 PM
#3:


Good

Nothing will ever change til we hit rock bottom apparently

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MorbidFaithless
10/08/20 9:13:22 PM
#4:


Is that bad

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VonOrdelia
10/08/20 9:13:43 PM
#5:


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Unsugarized_Foo
10/08/20 9:14:04 PM
#6:


So when dey gonna spend $2,400,000,000,000 to give me $1200?

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Bananana
10/08/20 9:14:06 PM
#7:


were running out of made up money

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Squall28
10/08/20 9:16:00 PM
#8:


Colorahdo posted...
Good

Nothing will ever change til we hit rock bottom apparently

People really think like this

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SocksForWokMAX4
10/08/20 9:16:58 PM
#9:


A reasoning why closing the country isn't a good thing
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#10
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Tyranthraxus
10/08/20 9:18:39 PM
#11:


MorbidFaithless posted...
Is that bad

No. The debt is meaningless we just keep borrowing more money. Never seems to run out.

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#12
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#13
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Tmaster148
10/08/20 9:21:10 PM
#14:


CloneTheHero posted...
yet liberals really wanna peddle socialism. we've already run outta money.

Well clearly our current system is the one not working now.

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#15
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1337toothbrush
10/08/20 9:22:02 PM
#16:


SocksForWokMAX4 posted...
A reasoning why closing the country isn't a good thing
You should close this account before it gets banned too. Seriously, wok, how many fucking accounts do you have?

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hockeybub89
10/08/20 9:22:20 PM
#17:


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iPhone_7
10/08/20 9:22:32 PM
#18:


SocksForWokMAX4 posted...
A reasoning why closing the country isn't a good thing
It was the right thing to do and is the right thing to do again to prevent another wave. Joe Biden will see to it, it takes real leadership to do the right thing no matter how unpopular. #CloseTheEconomy #VoteJoe

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#19
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hockeybub89
10/08/20 9:24:30 PM
#20:


CloneTheHero posted...
you sure? we live in the most prosperous era in human history. what exactly isnt working for you?
Tell that to the millions of poor and starving

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Tmaster148
10/08/20 9:24:44 PM
#21:


CloneTheHero posted...
you sure? we live in the most prosperous era in human history. what exactly isnt working for you?

It's our current system that is bringing us to the point where we own more in debt than what our GDP is.

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#22
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Turbam
10/08/20 9:26:14 PM
#23:


maga!!

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Feline_Heart
10/08/20 9:26:17 PM
#24:


SocksForWokMAX4 posted...
A reasoning why closing the country isn't a good thing
https://i.imgur.com/u4ymfTq.jpg

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Doe
10/08/20 9:26:32 PM
#25:


Fractional reserve banking is literally fairy magic. It doesn't matter as long as you pay interest most of the time.

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lilORANG
10/08/20 9:26:55 PM
#26:


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Questionmarktarius
10/08/20 9:27:02 PM
#27:


MorbidFaithless posted...
Is that bad
Not right now, no.
The problem lies continuing to run up the debt when there's not a disaster going on.
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#28
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lightwarrior78
10/08/20 9:28:23 PM
#29:


MorbidFaithless posted...
Is that bad
US debt is a funny thing. Most of it is to itself for things like social security, so the chance of crippling immediate debt recall is minimal, and a high amount would even be encouraged as it means people are saving for retirement, so long as the economy was also booming to cover it.

We are now in a shut down economy, and I do wonder who is taking on new investments like that right now for countries to go into. I'd hate to think rich people were buying bonds for the government to pay back with a yeild, only to have to give those same people bailout money for free.

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BlueTigerLion
10/08/20 9:28:25 PM
#30:


Time to bail out the people. They would spend the cash. Rich people pocket it or use it on stock market to make the rich richer.

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Hey now.
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#31
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lightwarrior78
10/08/20 9:30:22 PM
#32:


Feline_Heart posted...
https://i.imgur.com/u4ymfTq.jpg
I want all people like you on a register so if we have to go into austerity tactics, we know who to cut off first since they thought they didn't have to worry about keeping money flowing to do things like buy food and pay people to produce food.

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Questionmarktarius
10/08/20 9:30:33 PM
#33:


lightwarrior78 posted...
We are now in a shut down economy, and I do wonder who is taking on new investments like that right now for countries to go into. I'd hate to think rich people were buying bonds for the government to pay back with a yeild, only to have to give those same people bailout money for free.
Covid Bonds would have been a good idea, actually.
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Feline_Heart
10/08/20 9:33:01 PM
#34:


lightwarrior78 posted...
I want all people like you on a register so if we have to go into austerity tactics, we know who to cut off first since they thought they didn't have to worry about keeping money flowing to do things like buy food and pay people to produce food.
https://i.imgur.com/XxMGBgv.png

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Tyranthraxus
10/08/20 9:34:52 PM
#35:


lightwarrior78 posted...
so if we have to go into austerity tactics

Ah yeah that stuff that has essentially been proven to not work and gave birth the the fucking Nazi party in Greece that was just declared a criminal organization.

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It says right here in Matthew 16:4 "Jesus doth not need a giant Mecha."
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Questionmarktarius
10/08/20 9:38:23 PM
#36:


Tyranthraxus posted...
Ah yeah that stuff that has essentially been proven to not work and gave birth the the fucking Nazi party in Greece that was just declared a criminal organization.
Austerity is for the good times, not the bad.
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1337toothbrush
10/08/20 10:32:33 PM
#37:


https://usdebtclock.org

Of course, the budget is only brought up to stop measures that'd help people. When it comes to the military? Spend away! Tax cuts for the rich? Cut away! Healthcare for the people? BUT WHAT ABOUT THE BUDGET?!?!?!??!?!

Democrats play along with this too. We're going to see a lot of "we wanted to do that, but Trump left us with too much debt!" if Biden gets in (while approving military budget increases, of course).

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Rika_Furude
10/08/20 10:35:23 PM
#38:


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Squall28
10/08/20 10:38:18 PM
#39:


lightwarrior78 posted...
I want all people like you on a register so if we have to go into austerity tactics, we know who to cut off first since they thought they didn't have to worry about keeping money flowing to do things like buy food and pay people to produce food.

People who post that picture are just plain stupid.

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#40
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Rika_Furude
10/08/20 10:40:33 PM
#41:


Squall28 posted...
People who post that picture are just plain stupid.
You seem like the kind of person that would agree with that father that breaking his car window is too expensive so the only alternative is to let his toddler die while locked inside

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SuperShake666
10/08/20 10:54:52 PM
#42:


Is this the Making America Great Again I heard so much about? What's great about debt?

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Feline_Heart
10/08/20 10:58:36 PM
#43:


Squall28 posted...
People who post that picture are just plain stupid.
Ironic because I have you tagged as fool lol

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bevan306
10/08/20 11:03:28 PM
#44:


democrats about to take power, time to pretend to care about the debt again

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Squall28
10/08/20 11:06:11 PM
#45:


Feline_Heart posted...
Ironic because I have you tagged as fool lol

lol I'm not surprised you're someone who tags people with names.

Have you paid a bill in your life yet?

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You can't go back and change the beginning, but you can start where you are and change the ending.
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Feline_Heart
10/08/20 11:11:22 PM
#46:


Squall28 posted...
lol I'm not surprised you're someone who tags people with names.

Have you paid a bill in your life yet?
Yeah. Have you realized that peoples lives matter and the economy wont get better if people keep dying?

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