The U.S GDP was $22.7 trillion at the end of September 2021, and the U.S. Federal Debt was $28.4 trillion. This gives an extremely dangerous ratio of debt over GDP of 125 percent. Godman Sachs estimates 2022 GDP to grow 4.0 percent to $23.6 trillion.
The Biden Administration estimates a 2022 Budget deficit of $1.5 trillion. This is probably far below the actual figure given recent analysis by the University of Pennsylvania-Wharton Business School, but would increase U.S. debt to at least $29.9 trillion, a ratio of at least 127 percent. My own estimate justified by Wharton statistics is that the 2022 Budget deficit will be closer to $2.0 trillion and raise Federal Debt to $30.4 trillion or 129 percent of GDP, and considering an amnesty is included in the legislation, may be quite conservative. Amnesties are budget-busters and usually far larger and more expensive than anticipated.
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Socialism can't be that dumb...... it's winning.
ReplyDeleteGood one!:)
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