The US National Debt Load is Second-Worst in the World
by Ryan McMaken
The US Office of Management and Budget last month released its latest numbers of US federal debt as a percentage of gross domestic product. According to the OMB, the federal debt is now at 100 percent, which makes it similar to debt levels reached during the aftermath of the second world war when the US was still dealing with its massive war debt.
Indeed, since 2008, federal debt levels have been at 50-year highs and at levels one would expect from a country in crisis or at war:
Defenders of deficit spending, however, claim that 100 percent of GDP is not particularly alarming, and some point to the fact that, in comparison to other wealthy nations, a debt level of 100 percent is not anything special. For example, if we use the World Bank's data oncentral government debt, we find that the US falls below Japan, Italy, and even the UK:
While Japan, Greece, and Portugal all certainly have their budget challenges, the deficit-spenders say, none of these places are on the verge of collapse. Moreover — it is often pointed out— the US benefits from the fact that it controls the global reserve currency and can thus monetize its debt more freely than other states.
The US Office of Management and Budget last month released its latest numbers of US federal debt as a percentage of gross domestic product. According to the OMB, the federal debt is now at 100 percent, which makes it similar to debt levels reached during the aftermath of the second world war when the US was still dealing with its massive war debt.
Indeed, since 2008, federal debt levels have been at 50-year highs and at levels one would expect from a country in crisis or at war:
Defenders of deficit spending, however, claim that 100 percent of GDP is not particularly alarming, and some point to the fact that, in comparison to other wealthy nations, a debt level of 100 percent is not anything special. For example, if we use the World Bank's data oncentral government debt, we find that the US falls below Japan, Italy, and even the UK:
While Japan, Greece, and Portugal all certainly have their budget challenges, the deficit-spenders say, none of these places are on the verge of collapse. Moreover — it is often pointed out— the US benefits from the fact that it controls the global reserve currency and can thus monetize its debt more freely than other states.
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