Federal Debt Now Equals Total U.S. Economy

If you’re looking for inspiration to get out of debt, then you would definitely not want to look to the U.S. government.

They’re setting a horrendous example… and then trying to pass it off as “no big deal.”

In my opinion, it’s only a matter of time before the U.S. debt load comes crashing down.

But hey — I’m just a citizen. What do I know about economics and finance?

Good question. I’ll answer it in just a second. But first, from the article:

Mr. Obama’s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.

Here’s what I know about economics and finance:

When you’re total consumer debt exceeds your gross annual income, you’re pretty much screwed. To get out of debt, you’ve got to make huge gains in your annual income — which for most people (and governments) is not realistic.

Get the full story here and see if you agree with my conclusions:

Federal debt now equals total U.S. economy

Tagged as: Budget, Citizen, Conclusions, Debt Load, Economics, Economy, Federal Debt, Fiscal Year, Gdp, Governments, Gross Domestic Product, Inspiration, Obama, World War Ii