And there is no reason for the government to default. The U.S. government owes $12.8 trillion to the public. The majority of this money is owed to American citizens and businesses. And the annual output of the U.S. economy is currently $18.1 trillion and growing. The federal government collects over $3 trillion in taxes every year. The national debt just isn’t that big a deal. If it were, you’d see investors demanding high interest rates on American debt. But interest rates are in fact very low, meaning investors think the U.S. will not have trouble paying its debts.

This idiotic remark by Trump means that Trump has no idea how the US economy works. There is no reason ever for the US gov’t to default on its debt. Ever. Threatening to do so though makes our government less appealing to the rest of the world and the US will lose its standing as the top world economy.

Someone needs to give Trump a crash course on this stuff!

Source: Great, Donald Trump Threatened To Default On The National Debt

No ratings yet.

Leave a Reply