Lately, we hear about the TRILLION DOLLAR national debt!!! A trillion sounds like a lot right? Maybe, but first let's calibrate to the perspective of our national economy. The U.S. economy is first in the world at 13.2 trillion dollars of gross domestic product in the year 2006 so we're talking about a big huge amount of currency moving around.
I found the chart below that shows the U.S. economy much like a business person would look at a business or a real estate investor might look at a cash flow property -- income less expenses.
The result is a proportion of debt in relation to the economy. This formula takes out the change in the value of one dollar. Remember that one dollar fifty years ago spent a lot different than one dollar today. So that's why one would think that comparing the actual debt volume is inaccurate.
Of course there are many other issues dealing with our economy that are equally important that also deserve reasonable attention. As for the debt, I think it's fair to believe that we are reasonably in check.
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