Skip to main content

View Diary: How to 'Cure' the National Debt Hysteria?  Re-link our Debt from GDP, to Revenue (13 comments)

Comment Preferences

  •  Why does debt even matter (2+ / 0-)
    Recommended by:
    jamess, BlueDragon

    instead of how you have to 'service' that debt?

    What would seem to matter would be the payments on that debt as a fraction of GDP or revenue. Most people starting out with mortgages have a Debt/revenue well in excess of 100%, but if the interest rates are low, and if the term is for an extended period of time, the 'load' on their finances could be quite moderate.

    For 2012, US net interest payments on the debt was $220 billion, compared to tax revenue of $2.45 trillion.

    •  The "national finances are like a household's" (2+ / 0-)
      Recommended by:
      jamess, Ozy

      meme needs to go.

      The fed gov deficit spends to fund our nation with our incomes.  Households don't.

      Households can be debt free.

      If the total deficit were paid to $0, there'd be $0 dollars in the private sector.

      Households also don't issue a fiat currency out of thin air.

      Thus households, unlike the fed gov, needs to earn it's dollars.

      The fed gov merely  ISSUES  our national currency, thus funding our incomes, including our ability to pay taxes.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site