We might think we know the extent to which our country is indebted but we might be wrong. Some critics of the spending that the government ends up doing believe that the government owes more than the total GDP or the gross domestic product of the country; approximately 103 percent. The same measurement is employed by the people who are responsible for the running of the debt clock of the country and is also present on the House financial Services committee website that’s run by the Republicans.
US government indebted more than you know:
Some people are naïve and they believe that the indebtedness is not that scary. They refer to a figure around 74 which is the total debt that’s in the responsibility of the public. This definitely is not inclusive of the debt that is owned by the federal government itself. Social security trust fund is one example of such debt. This is because many people believe that if the government owes the money to itself, then it’s not really indebted but that’s certainly not the case.
The Federal Reserve Bank of Chicago recently made an analysis which indicated that people regardless of their school of thoughts need to be worried about the way the government is continually spending more than it generates. They have released reports that indicate that there is gloom. A final result from their findings after taking into account different debts including the Medicare and pension funds, we get a staggering 288 percent of GDP.
While these figures are really eye-openers for every American dweller, as concerned citizens all we can really do is hope that the government realizes that this continuous overspending is not going to bode well for the economy in the longer run and serious steps need to be taken in this regard.
