MMT US Debt & Economic Growth Do Not Jive
Actualizado
Exposing MMT
Since 2019 US GDP has risen by 4% or $800 billion.
At the same time, US Debt has risen by 33% or $8 trillion.
If MMT worked as advertised GDP would have also grown by 33%. It didn't!
Why? bc Gov't debt is not productive. It is as plain as day.
Since 2019 US GDP has risen by 4% or $800 billion.
At the same time, US Debt has risen by 33% or $8 trillion.
If MMT worked as advertised GDP would have also grown by 33%. It didn't!
Why? bc Gov't debt is not productive. It is as plain as day.
Nota
I cannot understand for the life of me why FITCH downgraded the US?? LOL!SMH!
Nota
Public debt (now nearly $33 trillion) continues to far outpace real GDP growth.Think of it as extracting. Using 1.3 barrels of oil to extract 1 barrel. The math just doesn't add up. With higher rates, it will only get worse and worse. More oil to extract less of it.
Nota
🇺🇸 US government debt1973: $0.4 trillion
2023: $32.8 trillion
At this rate in less than 14 years US citizens will have to sustain interest payments of $100 trillion of public debt.
Let that sink in for a moment.
Nota
US childhood poverty more than doubled from 5.2% in 2021 to 12.4% in 2022.This news should be of no surprise to anyone who has followed me over the years.
Gov't "Stimulus" does not "Stimulate" the economy.
Gov't borrowing from the private sector and spending creates Household income dissaving = Profit Savings for the top 5% and liabilities for the 95%
In a perfect world Household income dissaving would be funded by Profit/Savings/ Investment in an ecosystem feedback loop making the economic pie bigger.
We don't want perfect, we would be perfectly happy with limited deficits in a time of crisis like a pandemic, or a GFC etc. Right now at max employment, we should be running surpluses, not 7% deficits. Economic growth should be outpacing deficits and inflation.
I have said too much and not enough. No matter your politics or what your favorite economic theory or model is, I think we can all agree endless trillions of dollars are no longer working to all our benefit.
Nota
US debt continues to far outpace real economic growth. That means, Gov't deficits are no longer having the desired effect on the real economy.
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