Page 12 - SixMistakesSuccessfulWomenMake22

Mistake #6:

Not Understanding the True Economic Challenges of the

Country

According to TreasuryDirect.Gov , between 1950 and 1999, the U.S. Debt grew

from $257 billion to $5.6 trillion. Between 2000 and 2014, the debt grew from 5.6
trillion dollars to over 17 trillion dollars. The US debt has increased by 100% since

2006.

The gross economic output of the country is known as Gross Domestic Product
(GDP). The total U.S. debt recently passed the entire GDP, at 102%.* This is

somewhat equivalent to you having a debt-to-income ratio of 102%; you would be
hard pushed to find a lending institution that would loan you one single dime. The
U.S. has tried to borrow its way out of debt, or they try to stimulate consumer

spending to increase production. It’s only a matter time before the day of reckoning
arrives, along with all the tough choices and pain that may come along with it.

But hold on, there’s more. I would encourage you to visit www.usdebtclock.org

and scroll to the very bottom of the page and look for unfunded liabilities. The U.S.
government does not report its unfunded debt for future obligations. These are the

amounts that the U.S. government would need to set aside today to pay for future
obligations, such as Social Security and Medicare, as they become due. As of June
2016, unfunded liabilities amount to over 102 trillion dollars, or $857,000

per taxpayer!

Now here’s the kicker: the US Government produces nothing and the revenue
largely comes from tax revenue, which is only $3.3 trillion dollars!* Where’s the
money going to come from?

Governmen Accoun Off (GAO) long-term fiscal simulation as

follows:

 A fundamental imbalance between revenue and spending over the long term
leads to continuous growth in debt as a share of GDP, which is unsustainable.