I feel like the United States is always meddling in other countries affairs and yet still climbing further into debt. Kind of like someone giving you advice on a golf course who is terrible themself. Is it the military presence? Economic relationships?
In: Economics
I think the simplest and most important thing you may not be thinking about is GDP.
Think about it. You’re 5, and you’ve get an allowance of $1,000 a year.
Your older brother mows the lawn for extra allowance, so he gets $2,000 a year.
BUT your older older sister has a real job and she makes $100,000 a year.
If your older brother owed you $1,000, he’d probably be able to pay you back, but it’ll take him 6 months minimum if he doesn’t spend a dime!
However, if your older older sister owed you $1,000, she could pay you back in 3-4 days. Just wait until Friday when she gets paid.
Who would you rather lend money to?
The US debt-to-GDP ratio is like 105%. It’s big, but don’t let the size of the number scare you. Think about it’s relative size!
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