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American Economics Thread
- Thread starter Bernard
- Start date
To keep household incomes consistent with GDP and ensure that average people own a share of the wealth they produce, there should really be legislated profit sharing requirements for employers. If employees contribute to gains in wealth, they should share in it. If times are bad, they tighten their belts with reduced or halted payouts while retaining base compensation. That or a heavy push towards unionization (ever notice how profit sharing bonuses are a big part of private sector union contracts). I think it would go along way towards normalizing household incomes relative to GDP.GDP per capita is not mean/median household income. That's why Taiwan's GDP per capita looks solid but most incomes suck. This applies everywhere. It's a data artifact of socioeconomic domination by billionaires and hundred-millionaires.
— once taxes, costs are factored in
For context, the is $70,784, according to the U.S. Census Bureau. But SmartAsset’s research shows that a family living in the Big Apple or Silicon Valley would need more than four times that amount to feel like they're in the "middle class."Withdrawing out of the 401k early is like selling your family's heirlooms to put food on the table. You don't do that stuff unless you have no other option.
Average interest on The U.S national debt is rising quickly as the debt matures and is refinanced at much higher interest. In May it was already 2.67% which means they are now (annualized) paying 865 billion in interest, more then the defense budget. If these high rates stay it will soon be double that number as the rest of the debt rolls over. Add to this their current pure deficit of roughly 1 trillion (without debt payments) and it is easy to see this snowballing completely out of control.
So... about 3-5 more years until the US economy collapses?Average interest on The U.S national debt is rising quickly as the debt matures and is refinanced at much higher interest. In May it was already 2.67% which means they are now (annualized) paying 865 billion in interest, more then the defense budget. If these high rates stay it will soon be double that number as the rest of the debt rolls over. Add to this their current pure deficit of roughly 1 trillion (without debt payments) and it is easy to see this snowballing completely out of control.
Its going to spillover, if it hasn't already over to consumer lending as anyone who has had to renew, refinance, or apply for a mortgage, car loan or any type of consumer loan since 2022 can attest to. Consumer spending is going to take a hit due to tightening the belt for debt servicing costs (and consumer spending is like 70% of the US economy) or people will end up having to raid savings or go on credit to keep up their current standard of living. If the US federal budget does end up needing a diet due to rising rates, it will be interesting to see who gets the shaft since 2/3 of their spending outlays are fixed by law to meet social insurance, healthcare, general welfare.Average interest on The U.S national debt is rising quickly as the debt matures and is refinanced at much higher interest. In May it was already 2.67% which means they are now (annualized) paying 865 billion in interest, more then the defense budget. If these high rates stay it will soon be double that number as the rest of the debt rolls over. Add to this their current pure deficit of roughly 1 trillion (without debt payments) and it is easy to see this snowballing completely out of control.
Collapse from national debt will happen when investors start to fear the U.S will default on the debt, hard to predict a date for that but yes this can not go on much longer.So... about 3-5 more years until the US economy collapses?
It also depends on what China and other holders of U.S debt and dollars do, the recent finding that China holds an additional 3 trillion in hidden foreign reserves should worry U.S planners... ( I am assuming a big chuck of those reserves are dollars)