Should We Spend More Than We Earned?

Spending 3-5% more than our GDP doesn’t sound so bad, does it?

But that figure is misleading. Our government is currently spending about 25% more than it’s income this year. That is a more realistic gauge of our deficit spending.

How many years would it take to go completely broke and without recourse spending 25% more than you earned?

I earned about $60,000 last year. If I spent that way, I would be incurring an additional $15,000 in debt PER YEAR. After 10 years, I would be over $150,000 in debt, NOT COUNTING INTEREST! If I stopped my deficit spending at that point, I might be able to dig out from under it after many years of hard work.

BUT IF I KEPT SPENDING THAT WAY WOULD PEOPLE (BANKS, etc.) WOULD STOP LOANING MONEY TO ME BECAUSE THEY WOULD SEE THAT I WOULD EVENTUALLY HAVE NO WAY TO REPAY THEIR MONEY TO THEM.

The horrible debt for U.S
The US government’s debts have ballooned so badly the National Debt Clock in New York has run out of digits to record the spiralling figure.
The digital counter marks the national debt level, but when that passed the $10 trillion point last month, the sign could not display the full amount.
http://investment-blog.net/us-debt-clock-runs-out-of-digits-bbcnews/

Having the biggest negative account balance of the world–U.S
http://investment-blog.net/us-is-the-biggest-debtor-and-its-recovery-in-this-recession-is-limited-by-its-debt/

Related Posts:

• How far is America away from the depression?
• US debt clock runs out of digits —- BBCNews
• From Denninger today — anyone know anything about AIG underwriting Greek debt? That could get interesting:
• I own a business. I see first hand what the recession has done to people’s spending habits.
• My list of leading economic indicators:

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