Can someone tell me when the national deficit will start affecting people?

[mommas homeboy]

At what point will the debt come crashing down and cause great poverty and loss of opportunity in the US?

It’s an issue that’s talked about every now and then. But is it really just a bunch of bullshit that will never make the average US citizen’s life much worse?

It seems like the whole peak oil fear people used to have. It’s mostly nonsense that will get dealt with fairly easily when the time comes.

And if I’m totally wrong, then tell me how. When will it start to matter, and exactly how will it’s impact be felt?

 

[Strychnine]

That's a good question.

 

[Darkballs]

The moment the world economy believe that the US can't fulfill it's debts. So I suppose you'd be looking at the debt to GDP ratio, as well as any indicators that this might change in the near future.

I'd suggest looking for an economist to give you a more nuanced answer than that.

 

[JonnyRingo84]

At what point will the debt come crashing down and cause great poverty and loss of opportunity in the US?

It’s an issue that’s talked about every now and then. But is it really just a bunch of bullshit that will never make the average US citizen’s life much worse?

It seems like the whole peak oil fear people used to have. It’s mostly nonsense that will get dealt with fairly easily when the time comes.

And if I’m totally wrong, then tell me how. When will it start to matter, and exactly how will it’s impact be felt?

meh

how much of our tax revenue goes to paying debt? how much of that COULD go to paying tuition, or for emergency/universal healthcare? more wars?

 

[abiG]

At what point will the debt come crashing down and cause great poverty and loss of opportunity in the US?

About the time when Trump removes his tongue from Netanyahu's sack.

 

[JudoThrowFiasco]

I cant say specifically when, but from what i can see its not as large of issue as either side is making it out to be. Right now the net debt is 82% of the GDP -- so the US pulls in more in a year than what it owes to its public as a whole -- compared to Japan which net debt is at 150% of its GDP. Its gross debt (which includes the money the government owes itself via interdepartmental transfers, etc) is only 107% -- its not like the government is going to call its loans it owes itself.

I guess the debt could be a factor if there was suddenly an huge interest rise and the public stops backing the American treasuries, but that seems like a long shot.

I guess the question is when does the debt (or addition of it) effect regular people?

 

[essie]

Okay I set an alert on my phone for every month until I die to remind me to let you know when it happens.

 

[Last Samurai]

it already is affecting you

as the interest payments become larger and
larger it will take up a bigger piece of the pie

add to that increased military spending and
a decrease in how much tax is collected

the result is obvious. you will lose benefits

 

[VivaRevolution]

At what point will the debt come crashing down and cause great poverty and loss of opportunity in the US?

It’s an issue that’s talked about every now and then. But is it really just a bunch of bullshit that will never make the average US citizen’s life much worse?

It seems like the whole peak oil fear people used to have. It’s mostly nonsense that will get dealt with fairly easily when the time comes.

And if I’m totally wrong, then tell me how. When will it start to matter, and exactly how will it’s impact be felt?

When China and Russia finish up their plan to remove the dollar as the world's reserve currency.

No worries though, I'm sure we will start WWIII, before we ever let that happen.

 

[Cajun]

Honestly, Clinton was the last pres that really watched spending. I have wondered when we were going to get back to some sort of responsible spending.

 

[mommas homeboy]

I cant say specifically when, but from what i can see its not as large of issue as either side is making it out to be. Right now the net debt is 82% of the GDP -- so the US pulls in more in a year than what it owes to its public as a whole -- compared to Japan which net debt is at 150% of its GDP. Its gross debt (which includes the money the government owes itself via interdepartmental transfers, etc) is only 107% -- its not like the government is going to call its loans it owes itself.

I guess the debt could be a factor if there was suddenly an huge interest rise and the public stops backing the American treasuries, but that seems like a long shot.

I guess the question is when does the debt (or addition of it) effect regular people?

That is the question exactly. But Last Samurai may be right. It already is.

 

[Jack V Savage]

Honestly, Clinton was the last pres that really watched spending. I have wondered when we were going to get back to some sort of responsible spending.

Obama probably did more than Clinton to reduce the long-term debt.

Debt interest was a legitimate problem in the early '90s so there was more pressure to do something then.

 

[kahiljabroni]

meh

how much of our tax revenue goes to paying debt? how much of that COULD go to paying tuition, or for emergency/universal healthcare? more wars?

This. Out debt interest is a yearly cost of something in the 400 billion range. Do you know how much our quality of life could improve if that money was put to good use? Every year

 

[Cajun]

Obama probably did more than Clinton to reduce the long-term debt.

Debt interest was a legitimate problem in the early '90s so there was more pressure to do something then.

Well he doubled the debt in the short term.... Now Trump is not helping.... the days of trying to create a surplus are over I guess

 

[Jack V Savage]

Well he doubled the debt in the short term.... Now Trump is not helping.... the days of trying to create a surplus are over I guess

I'm talking about policy rather than a crude "he was president while X happened." Obama brought the debt down through policies, though it rose while he was president.

 

[Rod1]

When will it crash? when people start losing faith in the US dollar, so they stop buying debt.

When will it affect regular Americans? it already is through interest payments eating on government spending.

 

[Cajun]

I'm talking about policy rather than a crude "he was president while X happened." Obama brought the debt down through policies, though it rose while he was president.

In the end reality is reality and these presidents need to quit spending money that we don't have Imo.

 

[Rod1]

In the end reality is reality and these presidents need to quit spending money that we don't have Imo.

Congress is the one that approves the budget though.

Its all the political class that doesnt gives a damn about crashing the US.

https://www.cnbc.com/2018/03/05/ris...ing-to-the-us-economy-for-one-big-reason.html

 

[Rod1]

IMO they are playing a game of hot potato, the debt is bound to come crashing down eventually, Dems and Reps seem to be more worried about the other side being in power when that happens, than preventing it from happening.

 

[Cajun]

Congress is the one that approves the budget though.

Its all the political class that doesnt gives a damn about crashing the US.

https://www.cnbc.com/2018/03/05/ris...ing-to-the-us-economy-for-one-big-reason.html

Congress plays their part as well....