{"id":31150,"date":"2018-02-18T13:04:57","date_gmt":"2018-02-18T18:04:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31150"},"modified":"2018-02-18T13:04:57","modified_gmt":"2018-02-18T18:04:57","slug":"how-did-america-go-bankrupt-slowly-at-first-then-all-at-once","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31150","title":{"rendered":"How Did America Go Bankrupt? Slowly, At First, Then All At Once!!!\u00a0"},"content":{"rendered":"

How Did America Go Bankrupt? Slowly, At First, Then All At Once!!!\u00a0<\/span><\/a><\/h3>\n
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The US federal debt has again been on the move, as of mid-week up to a fresh record of $20.7 trillion.\u00a0 But, really, without some sort of reference point, what does that mean?<\/div>\n
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Typically, the metrics of total debt or federal debt\u00a0divided by\u00a0GDP (Gross Domestic Product or the total value of goods produced and services provided in the US annually) are used (chart below).\u00a0 Still, that’s a bit ethereal to most folks.<\/p>\n
So, I thought I’d make this simpler.\u00a0 The chart below shows federal debt (red line) versus total full time employees (blue line) since 1970.\u00a0 Clearly, debt has surged since 2000 and particularly since 2008 versus decelerating\u00a0net full time jobs growth.\u00a0 The number of full time\u00a0employees is economically critical as,\u00a0generally speaking, only these jobs\u00a0offer the means to be a home buyer or build savings and wealth in a consumer driven economy.\u00a0 Part time employment generally offers only subsistence level earnings.<\/div>\n<\/div>\n
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But if we look at the change over those periods highlighted in the chart above, we get a clear picture (chart below).\u00a0 Full time jobs are being added at a rapidly declining rate while federal debt is surging in the absence of the growth of full time employees.<\/div>\n
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And if we look at the federal debt added per full time job added (chart below)…broken arrow…broken arrow!!!\u00a0 That is $1.92 million dollars in new federal debt per net new full time employee since 2008.\u00a0 Compare that to the $30 thousand per net new full time employee from ’70 to ’80…or $140 thousand from ’80 to ’90…and nearly quadruples the $460 thousand per from ’00 to ’08.\u00a0 Despite a far larger total population and after ten years of “recovery” since ’08,\u00a0this is likely as good as it gets.\u00a0 We are likely at or very near the top of this economic cycle.\u00a0 This pattern\u00a0is likely to carry\u00a0forward over the next decade and economic cycle…likely with disastrous results.<\/div>\n<\/div>\n
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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n

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How Did America Go Bankrupt? Slowly, At First, Then All At Once!!!\u00a0 The US federal debt has again been on the move, as of mid-week up to a fresh record of $20.7 trillion.\u00a0 But, really, without some sort of reference point, what does that mean? Typically, the metrics of total debt or federal debt\u00a0divided by\u00a0GDP […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-31150","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31150"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31150\/revisions"}],"predecessor-version":[{"id":31151,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31150\/revisions\/31151"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}