The U.S. national debt is 73.6 percent of gross domestic product. To put that in household terms: if you earn $100,000 a year and have $73,600 in debt, you are in about the same shape as the federal government.
Anyone earning $100,000 who has a $200,000 mortgage, a $30,000 car loan and a $40,000 student loan is much worse off than the U.S. government and should be more concerned with their financial stability than they are about Uncle Sam.
Considering that the $100,000 a year family also has bills for food, clothing, utilities, etc. they are likely to have a debt to income ratio of something like 450 percent, or six times what the federal government owes.
To put our debt in further perspective, let’s look at some other nations with a national debt ratio lower than the United States: Lesotho, Haiti and Kyrgyzstan, for instance. Germany, Israel, Great Britain and Japan, however, have a higher ratio of national debt than the United States.
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Do you see a pattern here? Industrialized nations invest in their futures.
The writer lives in Myrtle Beach.