To quote Ronald Reagan, “There is a clear cause and effect here that is as neat and predictable as a law of physics: As government expands, liberty contracts. If the national debt rises as projected ($45 trillion in 2024 and $78 trillion in 2028), Americans will feel the pain as labor markets tighten, the gap between the top 10% and the bottom 50% widens, and social unrest grows. However, with an already burgeoning debt, which is expected to grow substantially in the coming years, additional debt will create systemic problems which, at some point, may be impossible to escape.Īmerica is at a crossroad. As government expands, it will require even more revenue and taxes will be the vehicle. If Biden wins, there will be increased regulation, higher taxation, and an increase in social programs. Trump is very much like Reagan on economic growth. How will the November election affect things? If Trump wins, he will continue to deregulate and cut taxes to stimulate economic growth. However, you cannot tax your way to prosperity, and in fact, increased taxation is an economic headwind. However, with such a high level of debt, if Washington fails to get the budget under control, it will seek to raise taxes. If jobs are plentiful and wages are decent, the economy will fare better, and tax revenues will follow. The UK’s national debt currently stands at £1.6 trillion, and it’s growing. The report also states that as federal debt rises beyond this threshold, a country’s is less able to handle an unexpected crisis.Įxcessive Federal Debt: What Does it Mean?Ī government is only as solvent as its citizens. The Debt Clock in New York City is a large digital clock located near Times Square that displays the current amount of the United States national debt. The debt clock is currently over 713 billion and Canada’s federal debt continues to grow daily. Thus, we can expect slower economic growth in the future. The Canadian Taxpayers Federation claims that the clock and Canada’s federal debt are growing by 878 per second, which is 52,701 per minute, 3.1 million per hour, or 75.9 million every single day. Currently, the federal debt to GDP ratio is 136.58%. The conclusion? When government debt exceeds 85% of GDP, economic growth slows. But high levels can be damaging.” The research examined data from 18 countries from 1980 to 2010. In the study entitled, “The Real Effects of Debt,” the BIS found, “At moderate levels, debt improves welfare and enhances growth. The BIS, located in Basel, Switzerland, is owned by 62 central banks from countries around the world that collectively represent 95% of total global GDP. But to understand the full impact, we will reference a 2011 study conducted by the Bank of International Settlements. Most understand, to some extent, that excessive debt will hurt future generations. ![]() Table: National Debt by President and Control of Congress MJP The following table shows the amount of debt at the start of each presidential term (includes midterms), the percentage of increase during each president, and the party that controlled Congress. During the first three years under President Trump, the debt rose 17.0%. Under President Obama, the debt increased 50.7% in his first term and 18.3% in his second. ![]() Republicans controlled Congress in all but his final two years. Bush occupied the White House, the national debt rose 34.7% in his first term and 43.1% in his second. Democrats controlled Congress during his first two years, but republicans regained control for the remaining six years. As of June 2020 the debt-to-GDP ratio was 120.5, due to the economic strain of the COVID-19 pandemic. Australian Debt was founded in 2010, in light of the Global Financial Crisis to help inform Australians of our nations trending money. This number equates to 80,422 for every person living in the u.S., and is 123 of the U.S.'s annual economic output. Total of national government debt and state & local government debt. ![]() When President Clinton was in office, the federal debt rose as well, but only modestly. As of July 2020, the national debt is more than 26.5 trillion. Bush presidency, the federal debt rose 54.4% as democrats controlled both houses in Congress. His successor, President Reagan, oversaw a 77.4% and a 60.2% rise in the debt during his two terms while working with a split Congress in all but his final two years in office. President Carter, along with a democrat-controlled Congress, presided over a 44.1% increase in the national debt. The timestamp is only as accurate as the clock in the camera, and it may be completely wrong.National Debt: Percentage Increase by President-Carter to Trump MJP If the file has been modified from its original state, some details such as the timestamp may not fully reflect those of the original file. This file contains additional information such as Exif metadata which may have been added by the digital camera, scanner, or software program used to create or digitize it.
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