The below video provides a solid understanding of how debt has grown in recent years.
A few caveats, the explanation is framed in a generally establishment Keynesian manner so there is a soft-peddling of some of the government debt. And there is no explanation of the fact that any increase in debt crowds out the private sector. The private sector is where gains in the standard of living occur.
Also, the video was created in 2014 before Trump's recent spending, so debt projections are even higher now.
But this will give you a very good rough idea and it is interesting that an establishment organization like the Brookings Institution was concerned about the debt even before Trump was elected. The picture is much worse now.
-RW
Huh? Lowering taxes causes more debt? That's their message. I think you missed it.
ReplyDeleteLowering taxes causes more debt if you don't simultaneously reduce spending. If they don't cut spending then they have to borrow the difference.
ReplyDelete