$18trillion US debt visualized
Introduction
In today’s economic landscape, discussions surrounding government $18 Trillion US Debt often lead to concerns and questions. One of the central questions is whether it’s somehow ‘better’ if the government defaults on its citizens compared to banks. Let’s explore some of the key reasons why you might not need to worry too much about it.
US Government Debt Reaches $18 Trillion US Debt
Reasons for Not Worrying About US debt
Congratulations to the United States government for accumulating a staggering $18 trillion in US debt! Despite this astronomical figure, several factors might put your worries at ease.
They Can Get It Under Control: Addressing the $18 Trillion US Debt
One argument often heard is that the government can manage and control its debt situation. However, is this assertion entirely accurate?
Fact 1: The Last Several Years
The truth is that in recent years, the US government has been using a significant portion of its tax revenue, approximately 90%, to fund mandatory entitlement programs and pay the interest on its debt.
Fact 2: Who Does the Government Owe?
Another commonly misunderstood aspect is who the federal government owes this enormous debt to. It’s time to uncover some of the truths behind this.
Fact 3: They Can't Solve It That Easily
The US government’s ability to address its debt issue isn’t as straightforward as it may seem. Let’s delve into the numbers.
Social Security Trust Funds
Two of the Social Security trust funds alone hold a substantial $2.72 trillion of US debt, which is a critical piece of the puzzle.
US Tax Revenue
Since the end of World War II, US government tax revenue has consistently accounted for roughly 17% of GDP. Increasing tax rates doesn’t significantly impact this percentage.
The Systemic Issue
It’s crucial to recognize that the problem extends beyond any single administration or president. The issue lies within the systemic structure of government finances.
Who is the World in Debt to?
Lastly, it’s worth pondering who the world is in debt to. Narrated from the words of Chris Winters, this question invites us to reflect on the global debt landscape.
In conclusion, while government debt can be a cause for concern, it’s essential to understand the intricacies of the issue and the broader economic context. Addressing government debt isn’t a simple task, and it involves various complex factors.
Additionally, at Video Chef, we strive to provide insightful content on economic matters, helping audiences comprehend complex topics like government debt through engaging visual presentations and informative discussions.