Lets say I make 50K a year (my personal GDP).My current personal debt is 55K.?
Should I raise my personal debt limit? Why or why not?
2011-07-08T00:05:12Z
2 finger salute. Giving my son an allowance is more like a charitable contribution. And allocating funds to the wife for expenses is spending, not income. I'm still at 55K
2011-07-08T00:06:46Z
Erik, companies that do that are now out of business. People who refi are now called under water. Hardly success.
2011-07-08T00:07:56Z
Charles Veidt Only because I can't print all the money I need.
2011-07-08T00:14:33Z
I'm including a link of debt as percentage of GDP. We surpassed 100% in 2011.
You can't equate GDP with personal income. GDP is a rubbish figure in many ways. If you give your son an alowance of 10K your household GDP is now 60K, if he then gives 5k to your wife towards household expense your household GDP is 65k.... now how does that "extra" 15K help pay off your debt ?
The biggest contributor to a nations GDP is a rich lawyer dieing of cancer, who is suing his previous doctor. Likewise, how does that help pay off national debt ?
============== You are quite correct your income is still 50k, however GDP is calculated in the manner I have described (65k), which is why GDP is not a good figure to use in such calculations and hence my whole point. GDP is total aggregate 'income' (the 65k), not external earnings (the 50k) which is what is needed to pay off debt.
You left our your net worth, and you'd have to consider that.
What you take in, exceeds your income, but what are your other assets or future expected income?
Do you have a great home, lots of land, land with needed resources like gold, oil, timber? Do you have a rich uncle? Are you in debt due to schooling that will cause your income to increase in a matter of years?
Then you have to take into account all that before you decide to raise your personal debt, you don't actually have a limit as long as you pay a minimum to the companies, they will determine your limit, not you.
There is, of course much more to the idea of national debt than just comparing it to personal debt. In fact though, you would be advised to get a second job, to get more revenue, not just cut costs. And that's what we should be doing, taking in more revenue and not just cut programs that will increase unemployment and turn more people into statistics.
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