Do you remember the rich people who lived down the street? The ones who lived in the big house, drove the new cars and wore all the brand-name clothes? And then they filed for bankruptcy? It happens too often. Unfortunately, debt is all too easy to accumulate. Some say it’s the American way. They may be right.
We tend to think that people are “rich” based on what they spend. In reality, it is what they can save that actually makes them wealthy. There is a lesson to be learned here with our national debt. Our total is now more than $28 trillion. That’s about $85,000 per person or $220,000 per household, and it continues to grow. The main reason is the budget deficit, which is what happens every time our government’s spending exceeds the budget limit.
So to the rest of the world, the United States may look like the family down the street with the big house, the new cars and the brand-name clothes, but reality is creeping in.
Of course, those who earn more money can logically assume more debt, and our country ranks at the top in that regard. As such, the appropriate measurement shouldn’t be total debt but rather its debt as a percentage of the gross domestic product (GDP), which is calculated by adding personal consumption, private investments, government spending and exports (minus imports) together.
So with that all that complicated stuff taken into consideration, where does the U.S. rank with its debt as a percentage of GDP compared to other countries? The short answer is 13th at 106.7%, according to www.worldpopulationreview.com. The 12 with a higher debt percentage, in order, are Japan, 237.54%; Venezuela, 214.45%; Sudan, 177.87%; Greece, 174.15%; Lebanon, 157.81%; Italy, 133.43%; Eritrea, 127.34%; Cape Verde, 125.29%; Mozambique, 124.46%; Portugal, 119.46%; Barbados, 117.27%; and Singapore, 109.37%.
And in case you are curious — and of course you are — the 13 countries with the lowest debt as a percentage of the GDP are as follows: Brunei, 2.63%; Afghanistan, 6.88%; Estonia, 7.61%; Botswana, 12.78%; Russia, 13.79%; Democratic Republic of the Congo, 14.01%; Solomon Islands, 14.56%; Azerbaijan, 17.59%; Kuwait, 17.78%; Micronesia, 18.41%; United Arab Emirates, 19.20%; Bulgaria, 19.33%; and Kazakhstan, 20.90%.
Clearly there are many factors in play here, but the rule for our elected officials is the same one we should have for ourselves: quit spending more than you take in.
Have a wonderful Wednesday, and thanks for reading.
Shane Goodman
President and Publisher
Big Green Umbrella Media
shane@dmcityview.com
515-953-4822, ext. 305 |
