Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Are you worried that our debt to GDP is over 100%?

Most countries start having an economic crisis when the debt to GDP gets around 100%. The USA now has theirs at 109%. If countries stop lending us money then the debt ceiling ceases to matter and we have to cut back on entitlements which make up about 50% of our govt spending. So everyone suffers if Obama cannot agree to a fix with anybody because he knows he is always right. This has only gotten worse under Obama and the ACA is set to make it still worse.

BTW, Social security expenditures exceeds military spending and so do other entitlement programs not counting the ACA so quit the ridiculous comments about how military spending is more than all entitlements combined. We still do not really know what the ACA is going to cost us but it is predicted to be very high.

If all you can do is defend Obama or attack military spending then do not bother posting. Entitlements is what is still going up every year and what will cause us to go into bankruptcy.

5 Answers

Relevance
  • 8 years ago
    Favorite Answer

    No I'm a Democrat and there's no such thing as consequences

  • lare
    Lv 7
    8 years ago

    Having a debt at 100% of GDP is not a big deal. Most families have a home mortgage that is more than their annual income as well. The reason is the same, that debt is not paid in one year. The federal debt is financed with 30 year maturity Treasury Bonds. The United States is not a third world country that has to take out loans, it is more like a well run corporation that issues bonds for the savvy investor to finance the business.

    Social Security and Medicare are indeed "entitlements", because the benefits are paid for by the participants themselves, the government is just an administrator of the plan. In this sense, you bank account balance is an "entitlement" too, because you expect to get that money back some day, that is why it is shown as a liability on the bank's books. Not one penny comes out of the federal congressional budget, it is entirely off-budget. It does not contribute to the national debt, to the contrary SS alone has a $2.6 T surplus, which mean SS holds more than twice as many bonds as China. In fact most of the debt is held by government itself, including state and federal pension plans. Another large share is private pension funds and individual citizen savings. The reason other governments buy them is as a hedge against their own economy going south.

    funny you should mention ACA costs, because Paul Ryan uses savings to government from the ACA implementation to help reduce the deficit in his Republican budget plan. That is why he is silently not calling for ACA repeal, he knows it is good for America.

    You have to get past the idea that some government programs are big. That does not make them bad or more costly than the alternatives. Just as large corporations do better than small mom and pop companies even with a little bureaucracy and CEO bonuses, big government does some things better than individuals can fending for themselves. sorry Ayn Rand was wrong.

  • ?
    Lv 5
    8 years ago

    Don't worry, Obama is a historic black president so debt doesn't matter. Or so liberals tell us.

  • 8 years ago

    Well we are now in dangerous territory and we have no idea when our creditors will stop buying our debt

  • 8 years ago

    Well.. Obama you better fix everything NOW!

Still have questions? Get your answers by asking now.