The present USA has the same Debt/GDP ratio (125%) as the country had at the end of WWII.
Of course, at the end of the WWII, Federal Govt sharply reduced its expenditures. At the same time, the Federal Reserve kept interest rates low, so inflation ate away at the nominal debt. At the same time, by 1956, Eisenhower had balanced the Federal budget. The national debt finally dropped to about 25% of GDP in 1980 - 35 years later
Its now very different from 1956. In 2024, we have not fought a world war, the world is slipping out of America’s control, Washington DC is controlled by neo-marxists and kleptocrats, and Americans are hooked on welfare and government spending of all forms. There will be no fiscal discipline whatsoever.
The likelihood is for very high inflation, until some sort of jarring social/political either starts us on the road to discipline, or finishes off the Republic
That’s interesting, it’s the same with tax revenue as a percent of GDP vs spending as a percent of GDP.
They collect 15-20% of GDP since WWII
for years on end they’ve spent over 25% of GDP.
Also of interest-
In Japan, the interest payments on the national debt account for a significant portion of the budget. As of 2023, these interest payments consume approximately 22% of the Japanese national budget.
We’re nowhere close to that, yet I never read of the certain doom of the honorable Japanese and the Yen.