About GDP and Debt Ratio

Professor Paul Krugman discussed the Federal debt and GDP ratio in his blog. He compared the debt after the World War II and the debt in Ragan’s era with the debt ratio today. He concluded that Federal debt ratio go up to 70% of GDP should still manage. His opinion seriously misled people. My commends about his terrible concepts in his blog was deleted.

The major mistake he made was that he just talks about ratio we once had after the Second World and ignore the changing of environment. After the Second World War, 50% of the exported products in the world were made in the United States. Our steel, motor companies made good profit at that golden age. It helped us to pay off our debt that was above 80% of our GDP. Another thing is that GDP in those days must be much lower than today’s GDP as well as the dollar amount of debt. Lower GDP give us protencial to increase our products and lower debt amount can be handled easily. We ccn handle things then doesn’t mean that we are fine today. Ignoring the actual dollars amount and talk about the ratio is another mislead our economicists created.
We can not even compare Ragan’s era and now because China and India were still weak 20 years ago. Today, countries from all over the world export their production to the United States. Our trade deficit can go up to half trillion dollars annual. Many of our businesses move to over sea to avoid the high salary rate and high health insurance premiums.Companies that stay in America are hardly make money. The GDP they contribute have no meaning because their profit is Zero. Yet our economists still ignore the profit range and talk about GDP and debt ratio.
They said GDP and debt ratio up to 70% is OK also because Japan’s debt ratio is in that range. They forget that Japan is holding almost 700 billion dollars bonds that issued by American Government. Beside most of Japan government debt are hold by Japanses who have good savings. Unfortuntly, most of our debt are hold by foreiners.
More or less GDP reflects government’s income that can be used to pay off debts. However, we still have to know 1. How do we compose GDP? 2. How many percent of GDP is profit? Those profit belongs to whom. 3. How many percent of government’s income from GDP can be used for paying off national debt?

How do we compose GDP?  All these years, our financial institutes have no products except for making bubbles. We count their earning on the book into GDP and ignor the deficiency they created. Our agriculture products being supported by our government and create little bit profits for this country yet they have contribution to GDP. Our legal companies, insurance companies and healthy care field created unnecessary expenses for the public and their profit of cause are a part of GDP. Except military industry and some high-tech companies I don’t see that many American businesses have real profit. Warmongers will not use their income to pay off our national debt. GDP just reflacts the the economic activities and doesn’t reflact the profit range and profit distribution.
Even though we accept that 5% of our GDP is our profit and can be used to pay off our debt we are still in deep trap. Our debt is 70% of our GDP and if the interest rate of our debt is 5% it means 70% of our income will be used to pay for just interest ( debt will be still there). In another word, we have only 30% income leave for our food and shelters. This will be the picture of our children’s live in the future.

Some one may said government’s tax income in GDP obviously is higher than 5%. No matter how much government might get through tax, theoritically only government’s suplus are used to pay off government debt. The fact is that all the governments tax income have already budgeted for certain expenses. In 2010  Federal government has 140.4 billion deficit and in 2009 their tax decrease 25%. Under this kind situation, how can we pay off our debt? How can we say that National debt go up to 70% of GDP is still good to be handle?
Our economists mislead publics in a very horrible way. Being influenced by this kind of concepts, no wonder our economic collapse. When things collapse economists are the first people who run away. They will say politicians destroy people’s faith and it has nothing to do with economists’ calculation. Politicians will not run away but jump up and down. They will promise that they can solve the problem. When they can not meet their goal they step down and let the other party try. They simply fool the public by turns. Talking about GDP and debt ratio is a way they fool us at the moment.

89 Responses to “About GDP and Debt Ratio”



  1. Great article. I will be going through a few of these ixsues as well..


  2. magnificent submit, very informative. I wonder why the other experts of this sector do not
    realize this. You must continue your writing. I’m confident, you’ve a huge readers’ base
    already!

    Feel free to visit my web site – fifa 14 ultimate team free coins no surveys (myanmartalk.com)


  3. One that makes it especially easy for Borth’s character.

  4. linux vps says:

    Pretty section of content. I simply stumbled upon your web site and in accession capital to assert that I acquire in fact loved account your blog posts. Anyway I will be subscribing for your augment or even I achievement you access consistently fast.


  5. Very nice info and right to the point. I don’t know if this is really the best place to ask but do you guys have any ideea where to hire some professional writers? Thx :)

  6. Klikono says:

    Thanks a lot for giving everyone an extremely brilliant possiblity to check tips from this website. It really is so cool and as well , jam-packed with a great time for me personally and my office colleagues to visit your site at minimum three times in 7 days to study the new stuff you will have. And indeed, I’m also at all times motivated with the powerful inspiring ideas you give. Selected 1 facts in this posting are ultimately the most beneficial we have ever had.


  7. I was very pleased to find this web-site.I wanted to thanks for your time for this wonderful read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you blog post.

  8. Jhon says:

    What i don’t understood is actually how you are not actually much more well-liked than you might be now. You are so intelligent. You realize thus significantly relating to this subject, produced me personally consider it from numerous varied angles. Its like women and men aren’t fascinated unless it’s one thing to do with Lady gaga! Your own stuffs excellent. Always maintain it up!

  9. vipit says:

    very helpful material, all in all I imagine this is worthy of a book mark, many thanks

  10. phpscripts says:

    Thank you for this blog. You most by all odds have made this blog into something that is eye opening and important. You distinctly know much about the subject, youve covered so many bases.

  11. Jada Janisch says:

    Excellent blog, saved your site with hopes to read more!


  12. Concise and well crafted, appreciate the info. Would you care if I post some of this on my site basically include a reference to this site?

  13. Rufus Forster says:

    I simply want to tell you that I’m newbie to weblog and certainly loved this blog site. Likely I’m planning to bookmark your site . You definitely have wonderful well written articles. Thanks for sharing with us your blog.


  14. I just want to mention I am just very new to weblog and certainly savored your web blog. Likely I’m planning to bookmark your website . You surely come with perfect writings. Many thanks for sharing with us your web site.


  15. You must certainly see your enthusiasm in the work you make. The world hopes for more passionate writers like you who are not afraid to discuss how they believe. Always follow your heart. Grafik komputerowy.

  16. callofduty says:

    i’ve visited this site a few times now and i have to say that i find it quite exeptional actually. continue doing what you’re doing! :)

  17. Nathan Miles says:

    I am so glad I came accross this today. Absolutely awesome and so true and i love it. thanks


  18. I used to be very pleased to seek out this web-site.I needed to thanks in your time for this excellent read!! I positively having fun with each little bit of it and I have you bookmarked to take a look at new stuff you weblog post.


  19. Your weblog is excellent. Thank you greatly for delivering a lot of very helpful information and facts.


  20. I agree using the author that individuals need to share the knowledge we all gain!

  21. coafor caini says:

    I definitely like your blog but i highly recommend you look at the punctuation on a number of of your articles. Many of them are packed with spelling errors and I believe it is very frustrating to say the least nonetheless I probably will come back again.

  22. Almeta Hahner says:

    The well written post helped me very much! Saved the site, extremely excellent topics everywhere that I read here! I like the information, thanks.


  23. There is so much valuable information that you provide. Keep them coming haha :D .

  24. vlc says:

    I found your website while stumbling. allowed me to really understand this topic. I have read most of them and got a lot from them. You are doing the great work!

  25. calivita says:

    I always insisting my dad that not all headlines posted online are original but this post can be an exceptional to my rule.

  26. Elden Folkins says:

    Hello.This post was really remarkable, especially because I was looking for thoughts on this matter last Thursday.

  27. Hal Bambino says:

    Hi there. I am a long time reader of this blog, but however I must inform you each and everytime I load your blog using Firefox, roughly twenty five percent of the post get cut off. I had a friend to load this website using the same exact browser as me. That person also has issues loading the whole article. I think it can be blamed on your html/css styling. You may want to modifying the css code, because I know that I am not the only one that is having trouble reading the whole posts. You would keep a lot more repeat visitors if you fix this problem.

  28. Vanessa says:

    I love the dear data you offer in your articles. I will be able to bookmark your blog and feature my children test up here generally. I’m fairly certain they are going to be informed a lot of new stuff right here than anyone else!

  29. jorden resor says:

    really like the post you published . it really is not that easy to discover good text toactually read (you know READ! and not just going through it like a zombie before going somewhere else), so cheers man for not wasting my time on the god forsaken internet. :D


  30. I’m wondering if you have noticed how the media has changed? What used to neve be brought up or discussed has changed. Frankly it is about time we see a change.


  31. This is a different sort of opinion that many people don’t usually talk about. Sometimes I fav stuff like this on Redit. This article probably won’t do well with that crowd. I’ll take a look around your site though and submit something else.


  32. I had fun reading your blog post hope you post more really enjoyable articles in the future.


  33. Nice website you got here, useful information and something I see a lot of people having problems with :p Sad that not everyone agrees but oh well haha it’s up to them.

  34. Payton says:

    I admire the valuable knowledge you offer on your articles. I can bookmark your blog and have my youngsters check up right here generally. I am fairly positive they’ll learn numerous new stuff right here than anybody else!


  35. Wow! Thank you! I constantly wanted to write on my site something like that. Can I implement a part of your post to my website?

  36. Billie Kadar says:

    Keep functioning ,remarkable job!


  37. I really must say thank you for giving me something to escape projects. Well, back to work for me. I really have to say thank you!

  38. twittwer says:

    I am speechless. It is a excellent weblog and really engaging too. Great work! That’s not actually much coming from an beginner writer like me, nevertheless it’s all I may just say after diving into your posts. Great grammar and vocabulary. Not like different blogs. You in point of fact know what you?re speaking about too. Such a lot that you simply made me wish to discover more. Your weblog has turn into a stepping stone for me, my friend.

  39. Korepetycje says:

    Oh God, that is a perfectly written article. I wish my English style was like this. Great job

  40. Laquita Ates says:

    Just what I was looking for, appreciate it for putting up.


  41. Not agree on several issues but the whole thing, and so impressive. Successful year!

  42. Thora Noey says:

    Only a smiling visitor here to share the love (:, btw great style and design .

  43. Paketresor says:

    Good written, its not that usual to read something that actually is worth reading nowadays :)

  44. 泳鏡 says:

    A truly beneficial publish by you my good friend. We have bookmarked this web page and can are available back again following several days to verify for almost any new posts that you just make.

  45. Paketresa says:

    Nicely written, it is quite unusual to read something that is worth checking out nowadays :)


  46. I am glad to be a visitant of this perfect site ! , thankyou for this rare information! .

  47. Gavin Pectol says:

    Precisely what I was looking for, appreciate it for posting .


  48. Thank you for the entertaining read! Happy New Year, and keep up the good work in 2011!


  49. I used to be wondering in the event you could be excited by becoming a guest poster on my weblog? and in change you may put a hyperlink the publish? Please let me know whenever you get a chance and I’ll ship you my contact details – thanks. Anyway, in my language, there are usually not a lot good source like this.

  50. Wilfred Olm says:

    What I dont understand is how youre not even more popular than you are now. Youre just so intelligent. You know so much about this subject, made me think about it from so many different angles. Its like people arent interested unless it has something to do with Lady Gaga! Your stuffs great. Keep it up!

  51. Gojackal says:

    brill blog you got here, thanks for the tips i learnt, i have bookmark your site and return often to check it out for new posts, many thanks on your good work


  52. Wow! The spam here is out of hand. How do you keep up with every one of these opinions?


  53. As a Newbie, I am always exploring online for articles that can be of assistance to me. Thank you!


  54. My mate and I were just talking over this particular issue, jane is continually seeking to prove me wrong! I will show her this particular write-up not to mention rub it in a little!


  55. Thanks a lot for that extremely helpful post. Your post helped me in my college assignment, If you can provide me more details please email me.

  56. Lue Oakes says:

    I have been exploring on the internet looking to get ideas on how to get our web site coded, your overall style together with theme are excellent. Did you code it yourself or did you get a coder to get it done for you?

  57. Armida Pullom says:

    You made various good points there. I did a search on the issue and found the majority of people will consent with your blog.

  58. Amanda Malama says:

    What I dont understand is how youre not even more popular than you are now. Youre just so intelligent. You know so much about this subject, made me think about it from so many different angles. Its like people arent interested unless it has something to do with Lady Gaga! Your stuffs great. Keep it up!

  59. Cordia Raisor says:

    I have plans to talk respecting and This is the interest in the topic it covers.


  60. Hi. I just noticed that your site looks like it has a few code errors at the very top of your website’s page. I’m not sure if everybody is getting this same problem when browsing your site? I am employing a totally different browser than most people, referred to as Opera, so that is what might be causing it? I just wanted to make sure you know. Thanks for posting some great postings and I’ll try to return back with a completely different browser to check things out!


  61. Hello, what a nice facts in your webpage listed here


  62. I have e’er been believed in persons with creative ideas who can compose superb articles.


  63. You are causing a big issue.

  64. Mose Niday says:

    I am not sure I entirely concur with you on this article. On the other hand I am definitely open to innovative ideas. Probably will have to think about it. Nice site by the way.

  65. Duncan Marius says:

    What I dont understand is how youre not even more popular than you are now. Youre just so intelligent. You know so much about this subject, made me think about it from so many different angles. Its like people arent interested unless it has something to do with Lady Gaga! Your stuffs great. Keep it up!

  66. emo porno says:

    well this is 1 way of doing it i suppose but good work keep it up


  67. Thank you for making the honest strive to provide an explanation for this. I think very strong about it and would like to learn more. If it’s OK, as you reach more intensive knowledge, could you mind including more posts very similar to this one with more information? It will be extraordinarily helpful and helpful for me and my colleagues.

  68. Davis Pinegar says:

    Hello! I just would like to give a huge thumbs up for the great info you have here on this site. I will be coming back to your site for more soon.


  69. I absolutely need to frequent this site much more often, information like this is hard to come by.

  70. Kayla Mandino says:

    I found your site while on google. I am very impressed with your writing skills and you have it together. I am starting my own site and have been looking for information and you have inspired me. Thank you!


  71. I was wondering if you ever considered changing the layout of your blog? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or two images. Maybe you could space it out better?


  72. Interesting point of view. I’m curious to think what type of impact this would have globally? Sometimes people get a little upset with global expansion. I’ll be around soon to check out your response.

  73. twitonic says:

    I often read your blog and always find it very interesting. Thought it was about time i let you know , Keep up the great work

  74. Lanette Hames says:

    Fantastic info=) Going to require some time to ponder your content:D

  75. Breann Virden says:

    Though I would’ve loved it much much more if you added a relevant video or at least pictures to back up the explanation, I still thought that your write-up pretty helpful. It’s normally tough to make a complicated matter seem quite easy. I appreciate your weblog and will sign up to your feed so I will not miss anything. Fantastic content


  76. Sorry for the huge review, but I’m really loving the new Zune, and hope this, as well as the excellent reviews some other people have written, will help you decide if it’s the right choice for you.


  77. Thanks for posting, I like this blog!


  78. Thought I would comment and say cool theme, did you code it for yourself? It’s really really good!


  79. Nice to become visiting your blog once more, it continues to be months for me. Well this post that i’ve been waited for so long. I will need this article to complete my assignment within the school, and it has exact same topic together with your write-up. Thanks, great share.


  80. How-do-you-do, just needed you to know I have added your site to my Google bookmarks because of your extraordinary blog layout. But seriously, I think your site has one of the freshest theme I’ve came across. It really helps make reading your blog a lot easier.

  81. Lanette Busic says:

    This website has more than enough good information on it, I check on it whenever I’m online. I wish other sites spent as much time as this one does making information clearer to readers like myself. I recommend this site to all of my facebook friends. This page will make some massive passive profit I’m sure.


  82. This website has more than enough good information on it, I check on it every few hours. I wish other sites spent as much effort as this one does making information “to the point” to readers like myself. I recommend this page to all of my facebook friends. This webpage will make some massive passive profit I’m certain.


  83. I was just reading your blog and I realized that what your wrighting is so true! People should think more often about this subject because this is to important to forget. Btw your website is really hard to read on my iphone. The screen looks very small and some words are placed outside of the borders. But besides that.. your blog is really great. Keep it up


  84. ” Whydestiny.com » Blog Archive » About GDP and Debt Ratio ” Haha, this is a great title mate :D


  85. I visited a lot of website but I believe this one has got something extra in it in it

  86. justhost says:

    I think youve produced some truly interesting points. Not as well many people would truly think about this the way you just did. Im seriously impressed that theres so much about this topic thats been uncovered and you did it so properly, with so significantly class. Beneficial 1 you, man! Really fantastic things right here.


  87. Wonderful job here. I definitely enjoyed what you had to say. Keep heading because you undoubtedly bring a new voice to this subject. Not many people would say what youve said and still make it interesting. Properly, at least Im interested. Cant wait to see a lot more of this from you.


  88. I’d be inclined to make a deal with you here. Which is not something I typically do! I enjoy reading a post that will make people think. Also, thanks for allowing me to speak my mind!


  89. I’m wondering now if we can talk about your sites statistics – search volume, etc, I’m trying to sites I can buy adspace through – let me know if we can talk about pricing and whatnot. Cheers mate you’re doing a great job though.

Leave a Reply

 

Open Sort Options

Sort comments by:
  • * Applied after refresh