No, the National Debt Is Already Larger Than the GDP
Bill Quick

President’s FY2015 budget more proof that he lives in a fantasy world | Questions and Observations

Talk about an understatement.  And the rosy projection?  Well here it is compared to the CBO projection:

Current GDP:

United States – Wikipedia, the free encyclopedia

$17.438 trillion

Current national debt:

U.S. National Debt Clock : Real Time

$17.477 trillion

In other words, the national debt is not 60 or 70 or 80 percent of the GDP, is it 100 percent of the GDP.

I am aware that Democrats and Obamalytes have desperately tried to redefine national debt in the past four years to mean “debt held by the public,” but why are we who know better letting them get away with it by going along with the scam?

We’ve let them define both inflation and unemployment down, in such a way as to make the taxers, borrowers, and spenders look better.  Why acquiesce to this as well?

Posted in Debt permalink
Bill Quick

About Bill Quick

I am a small-l libertarian. My primary concern is to increase individual liberty as much as possible in the face of statist efforts to restrict it from both the right and the left. If I had to sum up my beliefs as concisely as possible, I would say, "Stay out of my wallet and my bedroom," "your liberty stops at my nose," and "don't tread on me." I will believe that things are taking a turn for the better in America when married gays are able to, and do, maintain large arsenals of automatic weapons, and tax collectors are, and do, not.

Comments

No, the National Debt Is Already Larger Than the GDP — 4 Comments

  1. Allegedly low unemployment also helps make the case that the nation needs unlimited immigration, whether crop pickers from Mexico or IT workers from India. Combine this with generous welfare entitlements to keep non-working adults quiet and off the streets and we’ll have amnesty and a bump in H1-B visas before you can blink.

  2. All true. Besides, is not the debt held by social security and the Fed not publicly held? Or do they consider it private debt? Are not these institutions public domain?

    Think about the implications as you answer those questions.

  3. The approximately $6 trillion owed to the SSec trust funds is not debt, just a political promise. Courts have ruled on this. SSec taxes are required. Paying out SSec benefits is up to the politicians.

    Technically, SSec is a welfare program. Payouts are not related to taxes collected.

    The total of unfunded political promises represented by SSec, federal pensions, Medicare, and Medicaid is about $100 to $200 trillion among various analyses.

    Our politicians have turned the US into a giant Ponzi scheme.

  4. The logic is that intragovernmental debt, such as the nonexistent “Social Security lockbox,” is money the government owes to itself and can choose not to pay.

    But that’s not my point here. It is the redefinition of “national debt” in terms the people who ran up the debt find pleasing. We could just as easily – and as logically – redefine debt to mean “All national liabilities, whether unfunded or not,” but that total would be so enormous it would be obvious that we are so totally bankrupt we will never be out of debt absent murderous deflation and debt cancellation, or ruinous inflation and debt cancellation.