America's Wealth Hinges on Its Ability to Borrow Big
The U.S. economy is consistently ranked among the world’s strongest. But cut off its addiction to debt and exhaust its gold and currency reserves, and a very different picture would emerge.
The nation’s health as measured by gross domestic product per capita would plunge into negative territory without its dependence on borrowed money, according to data compiled by Bloomberg.
In fact, the U.S. would fall almost to the bottom of a ranking of 114 economies by GDP per capita. Only Italy, Greece and Japan would fare worse. That’s a seismic shift from America’s comfortable No. 5 spot on a list based on conventional measures.
A debt-free economy is unlikely to happen anytime soon. The U.S. will need to continue to borrow. The IMF projects America’s government debt to average 109% of GDP over the next five years.
https://www.bloomberg.com/news/articles/2019-08-31/america-s-wealth-hinges-on-its-ability-to-borrow-big-or-else?srnd=politics-vp