Around we go. What amount of debt seems realistic for an ordinary working stiff? We USAians typically go into debt for home ownership… and the amount is quite often as much as 5 times the debtor’s annual income. What seems to count more is whether they can manage the payments. It’s apparently difficult to get good numbers but the median payments to net income ratio seems to run above 25%.
So with all that as background, how much debt is it okay for the US government to have? I’ll let you do the math. But the bottom line is that — as usual — Varvel is blowing smoke: If the gross national product continues as it is, then this much debt isn’t more than an eyebrow-raise of worry. But when you talk about “$trillions in debt” it sure SEEMS to be too huge, doesn’t it?
Around we go. What amount of debt seems realistic for an ordinary working stiff? We USAians typically go into debt for home ownership… and the amount is quite often as much as 5 times the debtor’s annual income. What seems to count more is whether they can manage the payments. It’s apparently difficult to get good numbers but the median payments to net income ratio seems to run above 25%.
So with all that as background, how much debt is it okay for the US government to have? I’ll let you do the math. But the bottom line is that — as usual — Varvel is blowing smoke: If the gross national product continues as it is, then this much debt isn’t more than an eyebrow-raise of worry. But when you talk about “$trillions in debt” it sure SEEMS to be too huge, doesn’t it?