Economists made a model of the U.S. economy. Our debt crashed the model
Economists made a model of the U.S. economy. Our debt crashed the model
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Economists made a model of the U.S. economy. Our debt crashed the model
19 comments
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Should have used 64bit integers instead of 32bit integers
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YES!!!! USA! USA! USA!
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Racist dog whistle.
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What is?
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The constant fretting about debt.
We are always days away from some unspecified horror because the debt-to-GDP ratio is slightly higher than some other countries, yet data doesn’t support it. But we have to slash social spending. To prevent the thing from happening. Whatever it is.
But there’s always money for military and tax cuts for millionaires.
Hint: it’s racism. Or, perhaps, classism.
ETA: https://www.bbc.com/news/magazine-22223190
Oh look, a paper that “proves” national debt leads to disaster, frequently cited to justify extreme austerity (cuts to social services). Except, it doesn’t. The data they use shows that high debt leads to economic growth. They were too stupid, sloppy, and motivated by their conclusion to actually show the evidence that supported it. They half-assed some excel formula, it showed what they wanted it to show, and they hit “publish.” Now people are poorer, sicker, or plain dead because of them.
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19 comments
In 1929, the US had a GDP of $104B and a national debt of $16.4B
By 1933, the US had shrank to $57B in valuation, nearly 50% of its 1929 baseline. However, an austerity budget had kept national debt to a meager $23B. While economic scalds warned of a catastrophe, we had saved the country from itself. We had kept our budget tight and our gold reserves in tact. It was the most successful year of the American economy in its entire history.
Then the incoming President, FDR, institutes a sweeping expansionary economic policy which rapidly grew the US debt. From 1933 to 1945, the debt soared to $269B. US GDP was fully eclipsed, at a comparatively meager $229B. The surging rate of GDP was entirely thanks to year after year of domestic debt financing. The consequences would haunt us for generations.
As we all know, 1945 was one of the worst years for the US economy. I would like to think Americans will have learned a lesson from this story. But instead, they continue to spend recklessly at the federal level, bloating our national debt year after year, and driving our economy into the pavement as a result. We currently have a GDP of $27T and a Debt of $35T. Our country is ruined. Our economy is in shambles. We are the poorest nation on Earth. And yet we will not stop.
We need to go back. Herbert Hoover was right, but we wouldn't listen. We need to go back.