US Debt – new perspective

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US Debt – new perspective

This was one of the best reads ever on our national debt crisis – and yes, it is indeed a national debt crisis. I’m a numbers guy and have been following these macro trends since my college days.

This web article http://useconomy.about.com/od/usdebtanddeficit/a/National-Debt-by-Year.htm provides analysis by year dating back to 1929. It breaks it down by President, by year, includes events that causes a spike (9/11) but provides some insight that you may not have been aware of before.

For instance, it correctly states that debt should not be measured from the time a President takes office because the budget in the first year belongs to the outgoing President. The article continues that it’s best to compare each year’s deficit – along with the special events – to evaluate the effectiveness of fiscal policy. And by the way, it involves a few others besides the head honcho.

Analysis is one thing and action is another. I can scream all day long about the consequences of the the Debt/GDP ratio going from the low 30s (as a percentage) in the early 1980s to where it is today – for the first time, it’s over 100%. With near zero interest rates, a sluggish economy and entitlements at an all time high, every single American should be concerned. Not tomorrow, but right now. I’ve not heard any remedies from anyone – the candidates, the economists or the Wall Street experts. Maybe there isn’t one.

Being ‘connected’ to our bank of media sources is a clear indication of where America’s focus lies – they’re doing a superb job keeping us distracted.

Tick tock, tick tock.

Mark Schuster

June 5, 2015

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