US Debt clock, Unfunded Liabilities and Debt to GDP ratio

Posted By on June 24, 2020

USDebtClock200623

By now we all have heard and know about the TRILLIONS we have borrowed and continue to borrow as a nation in deep debt, but few are willing to make any changes to the status quo before this house of cards comes tumbling down. What we don’t really thing about quite as much are the "unfunded liabilities." They make the debt and deficit issue look manageable.

The big unfunded liabilities are federal liabilities are for those of us looking forward to Social Security ($21T unfunded) and Medicare ($32T unfunded). One doubts these will ever be correctly funded, but will come to a head when cuts are forced on recipients or changes to what younger people are taxed or the age they can receive. Everyone knows that "means testing" is going to be a given as some point.

The argument continues to be made that so as long as the US has a growing GDP, we can continue to print and borrow … but even a closer look at those numbers is telling (below). This irresponsible "living" can’t continue … let alone adding any of the proposals by Democrats campaigning for the November 2020 election (Green New Deal, Free college, etc).

GDP_USDebt200623

Comments

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
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