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Tag Archives: debt

Will the federal government default?

If the President (and his Senate) fail to reach a deal on raising the debt ceiling on October 17th, will the federal government go into default? Only if Barack Obama wants it to, because it’s entirely in his hands. Monthly revenue can easily cover the amount America must spend to service its debt. On top […]

Do we have a revenue problem?

Take a look at the average American’s share of federal revenue and spending from 1920 to now, adjusted for inflation to the value of a dollar in the year 2005. Click the chart to see it at full size. Since around 1995, the amount of revenue Uncle Sam has been able to squeeze out of […]

“Hey, Reagan increased the debt just like Obama.”

Oh, really? When a country’s debt climbs past 60% of the total size of its economy for an entire year (what economists call its “Gross Domestic Product”), the country’s economic health suffers. When the debt-to-GDP ratio passes 90%, alarm bells go off. The longer it stays that high — or higher — the greater the […]