American Economics Thread

[FriedRiceNSpice]

Finally - the American Community Survey asks about income, home ownership, education, and household structure. From here, we know that the median household that owns a 3 bedroom home with 2 cars and has children in college has household income of 125K. For a 2 income household, that simply requires each household income earner to be making ~60K. Hardly unreasonable or unattainable.

Wow, the median US household can enjoy the same quality of life as in other developed nations in the world. Rather than arguing about the criteria for "mass affluence and material abundance," and "total financial security," I will just end the discussion by saying I would expect the median household in most developed nations to enjoy "mass affluence and material abundance," by your definition.

 

[chgough34]

Wow, the median US household can enjoy the same quality of life as in other developed nations in the world. Rather than arguing about the criteria for "mass affluence and material abundance," and "total financial security," I will just end the discussion by saying I would expect the median household in most developed nations to enjoy "mass affluence and material abundance," by your definition.

Think this ends up proving the point - median U.S. home sizes are larger than the rest of the world (

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), with the highest car ownership rates (

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), and one of the highest in tertiary/higher education (

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). That this has been normalized and is considered “normal” by a vast majority of households simultaneously provdes
1. Mass affluence among US households and

2. Expectations and demands grow faster than the capacity to meet them, regardless of actual material conditions

 

[henrik]

Think this ends up proving the point - median U.S. home sizes are larger than the rest of the world (

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), with the highest car ownership rates (

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), and one of the highest in tertiary/higher education (

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). That this has been normalized and is considered “normal” by a vast majority of households simultaneously provdes
1. Mass affluence among US households and

2. Expectations and demands grow faster than the capacity to meet them, regardless of actual material conditions

The US is near bankrupt due to the national debt. The US households are near bankrupt because of credit card debt.

 

[chgough34]

The US is near bankrupt due to the national

Federal interest expenses are ~2.5% of GDP; within its historic range (

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). The U.S. government will live forever so the principal value can always be refinanced; the interest expenses, however, are sustainable

debt. The US households are near bankrupt because of credit card debt.

No - US households have combined assets of $177 trillion and combined liabilities of $21 trillion for a net worth of $156 trillion.

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[bebops]

National debt is not a major concern as the media portray to be.

Most of U.S debt is not foreign owned.. It is owned by ourselves.

If John lend 100 bucks with interest to Bob, it is still a healthy debt. Nothing wrong with it because they both are living in the U.S. Bob will take his sweet ass time to pay back John.

Owed and owned debt will cancel each other out because they happen in the U.S

 

[AssassinsMace]

China can claim the same yet the Western media says China is collapsing.

 

[jiajia99]

The US is near bankrupt due to the national debt. The US households are near bankrupt because of credit card debt.

You won’t be able to convince him at all. He will say everything is fine even if a civil war is happening full blast

 

[Derpy]

Federal interest expenses are ~2.5% of GDP; within its historic range (

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). The U.S. government will live forever so the principal value can always be refinanced; the interest expenses, however, are sustainable

No - US households have combined assets of $177 trillion and combined liabilities of $21 trillion for a net worth of $156 trillion.

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That is 2023 data, the interest expense is rising fast as old debt is being refinanced at higher rates.

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As of April 30 average interest on the debt is 3.23% which on the current 34.76 trillion debt gives an annualized interest expense of about 1123 billion which is 3.9% of the current GDP. According to your chart that would be higher then anytime in U.S history. If current rates stay then the average interest will continue to rise to around 5%. The U.S is currently borrowing about 1 Trillon every 100 days, finding buyers for all this debt will become harder and harder. The U.S is basically paying of it's credit card by opening another one, i would not call that a sustainable situation..

 

[henrik]

Federal interest expenses are ~2.5% of GDP; within its historic range (

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). The U.S. government will live forever so the principal value can always be refinanced; the interest expenses, however, are sustainable

No - US households have combined assets of $177 trillion and combined liabilities of $21 trillion for a net worth of $156 trillion.

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US households assets value are due to the printing of $US and US treasuries. Both of these are just paper assets supported by further printing of those assets.

 

[henrik]

National debt is not a major concern as the media portray to be.

Most of U.S debt is not foreign owned.. It is owned by ourselves.

If John lend 100 bucks with interest to Bob, it is still a healthy debt. Nothing wrong with it because they both are living in the U.S. Bob will take his sweet ass time to pay back John.

Owed and owned debt will cancel each other out because they happen in the U.S

The US government largest expense is paying interests on US treasuries. These are just paper assets supported by further printing of those assets. More interests needs to be paid on increasing amounts of US treasuries.