Robert Mcdowell

The U.S. Debt Quandary

Your figure of $125,000 for Government Debt per person in USA is out. The population is 301 millions. As of November 19, 2008, the total U.S. Federal debt was $10.6 trillion = about $35,200 per capita (that is, per U.S. resident). The October 3rd, 2008 bailout bill (H.R.1424), section 122, raised the U.S. debt ceiling from $10 trillion to $11.3 trillion. But, $5 trillions is debt internal to Government = between Government accounts.
Roughly $6.3 trillion is owed externally to Government over many years = £20,900 per person resident in USA or about $55,000 per household. But, non-Government private sector debt is about $37 trillion owing by business and households = $122,900 per person, or $323,200 per household. All these debts have offsetting wealth holdings and the debts will not be a burden on all equally. Some commentators add in unfunded debts looking forward decades that are paid out of each year's Government revenues (about 25% of which is taxation earned annually on Government's own spending) e.g. Medicaid, Social Security, Medicare, veterans' pensions, and similar obligations, this figure rises to a total of $59.1 trillion, or $516,348 per household In 2007, the public debt was 36.9% of GDP, with a total debt of 65.5% of GDP. As a % ratio to GDP US Federal debt is only the 27th largest. Why should this be a worry?