The problem isn’t simply that debt is rising. It’s that debt has been rising much faster than the productive economy supporting it.
In 1970, the U.S. had more than $14 of real GDP for every $1 of federal debt outstanding.
Today, it’s about $0.62 of real GDP for every $1 of federal debt.
Think of it like oil.
If one barrel of energy helped produce 14 barrels, the system had a huge surplus.
Today, using the same analogy, one barrel of input supports only about 0.62 barrels of output.
That is what declining debt productivity looks like: more claims, less productive economy behind each dollar of debt.
Note: Trump (the businessman) is responsible for more than 40% of all US debt, and he still has 2 more years to go.🤨
If you enjoy the work:
👉 Drop a solid comment.
Let's push it to 7,000 and keep building a community grounded in raw truth, not hype.
In 1970, the U.S. had more than $14 of real GDP for every $1 of federal debt outstanding.
Today, it’s about $0.62 of real GDP for every $1 of federal debt.
Think of it like oil.
If one barrel of energy helped produce 14 barrels, the system had a huge surplus.
Today, using the same analogy, one barrel of input supports only about 0.62 barrels of output.
That is what declining debt productivity looks like: more claims, less productive economy behind each dollar of debt.
Note: Trump (the businessman) is responsible for more than 40% of all US debt, and he still has 2 more years to go.🤨
If you enjoy the work:
👉 Drop a solid comment.
Let's push it to 7,000 and keep building a community grounded in raw truth, not hype.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.