US Debt Exploding Relative To Real GDP
US debt has risen more than 90% since 2016, with no meaningful increase in economic growth inflation-adjusted (Real terms) meaning we pay more for goods and services showing a higher nominal GDP.
As you can see in the chart the economy used to grow faster than debt and even outpaced debt in 70s, 80s and 90's.
As I have shown before on tradingview, The annual US Gov't spending as a percentage of annual GDP is now 45% and it has been even higher.
My question to you is this. next recession when Real GDP falls and politicians tell you we have to increase deficits and spending to "stimulate" the economy. How much higher will the debt go relative to real GDP?
As you can see in the chart the economy used to grow faster than debt and even outpaced debt in 70s, 80s and 90's.
As I have shown before on tradingview, The annual US Gov't spending as a percentage of annual GDP is now 45% and it has been even higher.
My question to you is this. next recession when Real GDP falls and politicians tell you we have to increase deficits and spending to "stimulate" the economy. How much higher will the debt go relative to real GDP?
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.