Don't worry about the US debt and it will go away

While the US worries whether Tebowing is a religious imposition and other deep issues the "Size of U.S. debt is now the same as its entire economy: $15.23 TRILLION" says a headline in the UK Daily Mail.

America's national debt has reached a worrying milestone - it is now as big as the whole of its economy.

The amount owed by the federal government to its creditors, combined with IOUs to government retirement and other schemes, now stands at $15.23 trillion.

The government estimated the value of goods and services produced by the economy in a year at $15.17trillion as of September.
However not to worry as
Many economists, such as the Brookings Institution's William Gale, say a better measure of the nation's debt is how much the government owes creditors, not counting $4.7trillion owed to future Social Security recipients and other government beneficiaries.

By that measure, the debt is roughly a third less: $10.5 trillion, or nearly 70 per cent the size of the economy. By historic standards, that is still high.
 
Oh, what a relief.
 
Uh oh, start worrying. 
 
According to long-term forecasts, debt will carry on growing faster than the economy, which would need to expand by at least 6 per year to keep pace.

President Obama's 2012 budget shows the debt passing $26trillion ten years from now.

But then, as Alfred E. Neumann of Mad Magazine famously asks "What, me worry?"  And then he grins his gap toothed grin.  What does he know that we don't?
 

While the US worries whether Tebowing is a religious imposition and other deep issues the "Size of U.S. debt is now the same as its entire economy: $15.23 TRILLION" says a headline in the UK Daily Mail.

America's national debt has reached a worrying milestone - it is now as big as the whole of its economy.

The amount owed by the federal government to its creditors, combined with IOUs to government retirement and other schemes, now stands at $15.23 trillion.

The government estimated the value of goods and services produced by the economy in a year at $15.17trillion as of September.
However not to worry as
Many economists, such as the Brookings Institution's William Gale, say a better measure of the nation's debt is how much the government owes creditors, not counting $4.7trillion owed to future Social Security recipients and other government beneficiaries.

By that measure, the debt is roughly a third less: $10.5 trillion, or nearly 70 per cent the size of the economy. By historic standards, that is still high.
 
Oh, what a relief.
 
Uh oh, start worrying. 
 
According to long-term forecasts, debt will carry on growing faster than the economy, which would need to expand by at least 6 per year to keep pace.

President Obama's 2012 budget shows the debt passing $26trillion ten years from now.

But then, as Alfred E. Neumann of Mad Magazine famously asks "What, me worry?"  And then he grins his gap toothed grin.  What does he know that we don't?
 


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