Derek Thompson: This Ain't Your Granpa's Debt

When budget experts take our debt’s temperature, the statistic they rely on is the debt to GDP ratio. Like banks or families, richer countries can borrow more, safely.

Now take a look at the graph of debt-to-GDP throughout American history below. If you draw a straight line across the picture at 30 percent, you touch some of the most wrenching periods in American history: 1) The American Revolution; 2) The Civil War; 3) WWI; 4) The Great Depression and WWII; 5) The early 1980s recession and the end of the Cold War…

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Posted in * Culture-Watch, * Economics, Politics, Budget, Economy, History, The National Deficit, The U.S. Government

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