Chart of the day

Is this a nice chart showing that throwing large amounts of government money at an issue does not do much to improve lives?

"While federal spending on Indigenous affairs [in Canada] has almost tripled since 2015, the uptick in Indigenous living standards is due primarily to the Canada Child Benefit, an unrelated federal program for families with children. ..." (Source)

Why Germany Should Preserve Its public Debt Brake and the US Should Adopt One

Recommendable! See also my today's chart of the day blog post!

Compare to e.g. the Eurozone debt threshold of 60% of GDP. Beyond 60% was considered fiscally imprudent and risky! Of course, the Eurozone debt threshold was ignored by the many, ever so crafty, big spending politicians.

Yes, debt and debt financing limits are long overdue to constrain the always profligate spending culture of the U.S. Congress!

"... By 2019, Germany’s debt-to-GDP ratio had dropped to a manageable 60 percent, a significant improvement from the heights reached during the global financial crisis [ended 2009]. ... 

Meanwhile, the United States faces a ballooning debt crisis, with public debt just shy of 100 percent of GDP at $28 trillion ($35 trillion if you add in debts owed primarily to Medicare and Social Security) and projected to rise sharply in the decades ahead. ..."

Why Germany Should Preserve Its Debt Brake and the US Should Adopt One | Cato at Liberty Blog

U.S. Credit Rating Downgrade, the second one, Is a Sign of Government Dysfunction

Hard to disagree with that statement! The U.S. government debt to GDP ratio is above 120%, one of the highest ratios of all members of the OECD!

E.g. whatever happened to President Reagan's support of a balanced budget amendment?

U.S. Credit Rating Downgrade Is a Sign of Government Dysfunction The national debt has ballooned from $14 trillion to $32 trillion in a little over a decade.

The Biggest Threat to the U.S.? Unsustainable government budget deficits and debt!

Very recommendable!

The fiscal irresponsibility of the U.S. Congress and the U.S. President have reached a critical level! The U.S. federal debt to GDP ratio has reached over 120% that is higher than basically all member states of the OECD.

The interest payments are already eating up the federal budget!

Living beyond the means is possible for some time, but not for very long!

None other than George Washington already warned the young United States:

46th President has the largest White House staff in history

No wonder, the demented and senile 46th President and the vanity seeking Dr. Jill Biden both need lots of attention! 😄

"Last year, the administration disclosed 560 White House employees — the most in American history. During their first two-years, the Biden Administration spent $100+ million on White House payroll.
However, during the past year, 220 staffers left White House employment ..."

"... The Biden White House employed 560 (FY2021) and 474 this year (2022). In 2022, the headcount dropped by 86 employees. ...
Biden employs 100 more staffers than Trump (374) (FY2018) and five more than Obama (469) (FY2010) at the same point in their respective presidencies."

BREAKING: Biden's Staff Flees Bloated White House Payroll — Still Spent $100+ Million

BREAKING: Biden Administration Spent $100+ Million On Payroll Since 2021 While 220 Staffers Quit Last Year 220 staffers left what used to be the most expensive White House payroll in American history.

Why Illinois Is In Trouble – 122,258 Public Employees Earned $100,000+ Costing Taxpayers $15.8 Billion

How is that possible? That is roughly 1% of the total population of Illinois! The highest paid governor (NY) in the United States makes only $225,000 per year (see my blog post). Looks like an egregious waste of taxpayers money to me! Illinois appears to be a public employees paradise thanks to this fiscal largesse!

"Here are just a few of our findings:

1. 40,000 K-12 educators made $100,000+ and only 24,500 are still working. The rest are retired on a six-figure lifetime pension.
2. 171 town managers out earn Governor J.B. Pritzker ($181,000).
3. Former Governor, Jim Edgar, moved into pension palace — last year Edgar double dipped two state retirement pensions and a part-time salary at the University of Illinois for total payout of $329,000!"

"... Barbers at State Corrections trimmed off $115,000; janitors at the State Toll Highway Authority cleaned up $123,000; bus drivers in Chicago made $174,000; line workers on the Chicago Transit Authority earned $222,278; community college presidents made $418,677; university doctors earned up to $2 million ..."

Why Illinois Is In Trouble – 122,258 Public Employees Earned $100,000+ Costing Taxpayers $15.8 Billion Despite Pandemic

President Trump Urgently Needs To Adress Runaway National Debt

Posted: 12/13/2018

Trigger

U.S. federal debt keeps on rising to unsustainable levels and it has been doing so under President Trump as well.

President Trump Made Some Progress Towards Stabilizing Or Reducing Debt

President Trump’s rescission request in May 2018 to the U.S. Congress of $15.4 billion was a valiant effort and it was a much appreciated step in the right direction, but far from enough. Unfortunately, the chronically foolish Democratic Party failed again by voting it down in the U.S. Senate in June 2018.

Trump also proposed to reform federal government employee salary and contributions so that employees pay more for their lavish benefits. A very welcome reform! (Source 4, 5)

I believe, there were more proposals by Trump to reduce federal expenditures.

A Brief Summary

U.S. National Debt has:

1. Tripled since 2000 to now $21.5 billion, while GDP less than doubled
2. Relative to GDP, national debt climbed from a very benign 55% in 2000 to over 100% of GDP in 2017. Only good news is that in 2016 and 2017 it stabilized at about 104%.
3. Among all OECD countries, the U.S. ranks 5th in terms of highest debt to GDP ratio (in 2015; latest available data), only surpassed only by countries like Portugal, Greece, Italy, and Japan. This is really bad!
4. The high national debt of the U.S. and other OECD countries is the major reasons why central banks have kept interest rates at extremely historical low levels for over a decade or otherwise the government net interest payments to service national debt would have become explosive
5. Obama added about $10.6 billion or roughly $1.3 billion per year in office. Had Obama and the Democrats not willfully prolonged and exacerbated the Great Recession, this dramatic increase in national debt would not have occurred
6. Trump has added so far less than about $2 billion or less than $971 billion per year in office

Here are the hard and very unpleasant facts (in $ billions):

Year	Nominal GDP	Debt	Debt Increase	Debt/GDP
2018		$21,516	$1,271
2017	$19,485	$20,245	$671	104%
2016	$18,707	$19,573	$1,423	105%
2015	$18,219	$18,151	$327	100%
2014	$17,522	$17,824	$1,086	102%
2013	$16,785	$16,738	$672	100%
2012	$16,197	$16,066	$1,276	99%
2011	$15,543	$14,790	$1,229	95%
2010	$14,992	$13,562	$1,652	90%
2009	$14,449	$11,910	$1,885	82%
2008	$14,713	$10,025	$1,017	68%
2007	$14,452	$9,008	$501	62%
2006	$13,815	$8,507	$574	62%
2005	$13,037	$7,933	$554	61%
2004	$12,214	$7,379	$596	60%
2003	$11,458	$6,783	$555	59%
2002	$10,936	$6,228	$421	57%
2001	$10,582	$5,807	$133	55%
2000	$10,252	$5,674		55%

Sources:

1. Treasury Direct Historical Debt Outstanding – Annual
2. BEA NIPA Table 1.1.5. Gross Domestic Product
3. OECD Data General government debt
4. Trump Proposals Would Cost Federal Employees, Retirees above $143 Billion
5. Trump thanks federal employees with $143.5 billion in retirement cuts