Suppose you had a co-worker. You both make the same salary, say $75,000/year takehome.
You mention that you are buying a house, and your co-worker says “I wish I could do that. I have too much credit card debt.”
“How much debt do you have?” you ask.
“$600,000,” he replies.
“Oh, my,” you reply. “Well, how did you spend that much so fast? What about your budget?”
“Yeah, I still spend about $110,000 per year, but most of my debt is just interest accrual.”
And that’s the U.S. in a nutshell. Yes, we can get by for another day or another month or another year - until we can’t. And then it all comes crashing down with a quickness.
Look at the graph here: en.wikipedia.org/…/History_of_the_United_States_p…
Notice that the last time our debt ratio got this high, it was WWII. After the war, the financial repercussions were addressed, the money was paid back and we got on with our lives. When it started to spike again in the 90s, Democrats and Republicans worked together and brought it back down.
So, if the debt is to be reduced, we either need to work together or we need a world war. Which do you think is more likely to happen?
Fizz@lemmy.nz 3 days ago
The world isnt America.
And also why are you using an example of 600k cc debt? 6k debt cc is more realistic and would be easily payable by someone on 75k. Dont get me wrong, the american debt situation is not good but society still moves along while people fall through the cracks.
MerryJaneDoe@lemmy.world 19 hours ago
I think you’re missing the point.
Our national debt is about 15 times higher than our GDP.
It’s NOT like a person making $75k/yr and owing $6k. It’s much more like someone who owes $600k and makes $75k.
It’s out of control. Reckless.
Fizz@lemmy.nz 14 hours ago
Why are you comparing government debt to individual credit card debt. They’re not comparable.
The debt to gdp ratio for the us is not good but its not society ending.