The United States is spending 7.5 TRILLION dollars more a year than we as a nation generate. Hat Tip 🎩 Graph curtesy of Marcus Lu
Not everyone has an understanding of what GDP or national debt means and the impact to the everyday Joe’s and Jane’s life and wealth. So let’s keep it simple so an accountant doesn’t have to explain it. GDP is Gross National Product or the entire income of the United States. This figure accounts for every product, from micro Chips to beef cattle. In sum it’s everything the US sells to other country‘s for income (call this the US paycheck). Now to look at the US debt or how much as a nation we spend or the United States bills. This figure is every dollar that is spent from federal, state, and local civil servants salaries and bennies. Also included military purchases aircraft carrier, military payroll, social security, retired politician’s salaries and bennies. Immigration costs legal and illegal flight and travel costs of Presidents, and congressional officials and staff.
Just like our budgets it’s a total amount of bills we have to pay against the total amount of our income. See the graph above for the figures. Here‘s the million dollar question, in our private budgets if we would consistently spend (bills) 20% more than your total possible income (paycheck) what would your financial status be like in five years? The simple answer bankrupt, in five years just our buying over our income would total more than our total annual paycheck. BUT what about our regular bills, what do we do with our current bills combined with the money we have spent in the past? An absolute impossibility to pay either. In short, in five years our over spending each year would equal our complete income currently, and no way to pay the current years income. The real shocker, our nation has been doing just this for over 20 years. To combine this horrific scenario most of the nations around the world have been doing the same thing. Here’s the proof a link to the every second update to the worlds spending and income, the debt clock. https://www.usdebtclock.org/world-debt-clock.html
I have no answer to this crisis, largely because no official person is inclined to give up their bennies or lavish lifestyle.
Disclaimer: I’m not any kind of Financial advisor, just a simple man matching up sets of numbers.
Smart thinking maybe we all need to provide a safety net for our famlies, like gold, silver coins or cryptocurrencies. Even in the largest businesses poor management can only go along for a period of time until collapse.