You can’t use your GDP to pay off debts. Wouldn’t it be better if we used how much % of a goverments budget goes towards servicing debts?

  • callouscomic@lemm.eeEnglish
    0·
    3 months ago

    Government debt is not like your debt. It’s a monetary control tool more than anything. So the revenue in a lot of ways doesn’t matter, especially for countries with a lot of power in their currency.

    • sunzu2@thebrainbin.org
      0·
      3 months ago

      The deficit totals $1.6 trillion in fiscal year 2024, grows to $1.8 trillion in 2025, and then returns to $1.6 trillion by 2027. Thereafter, deficits steadily mount, reaching $2.6 trillion in 2034. Measured in relation to gross domestic product (GDP), the deficit amounts to 5.6 percent in 2024, grows to 6.1 percent in 2025, and then shrinks to 5.2 percent in 2027 and 2028. After 2028, deficits climb as a percentage of GDP, returning to 6.1 percent in 2034. Since the Great Depression, deficits have exceeded that level only during and shortly after World War II, the 2007–2009 financial crisis, and the corona­virus pandemic.

      https://www.cbo.gov/publication/59946

      The federal government collected $4.47 trillion in revenue during the 2023 fiscal year.

      https://usafacts.org/articles/how-much-revenue-does-the-federal-government-collect/

      33T in national debt https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/

      1.6/4.5=35% of revenue is spent on debt service and nothing to show for it… no healthcare, no education, no housing, no maternity leave, no child care, no infrastructure…

      at what point are people going to start asking questions where the money went?