ipower tools

Click here to edit.

This is a graph that was sent to me by a friend who apparently is not too concerned about the debt. There are many graphs that can lead to a variety of conclusions. 
This graph and others may give one the impression that we have nothing to be concerned about because we have in the past incurred more debt as a percentage of Gross National Product. Many of these same folks still believe that FDR “got us out of the Great Depression”. The problem they say is that we have not spent enough.
I will ask those who suffer from this delusion to consider that there are many factors that play into this scenario other than simply the ratio of debt to gross domestic product. Demographics have changed and the population today lives much longer and survives for a good part on the emoluments or stipends from the government.  Unfunded liabilities and unsustainable pension systems abound.Today we are experiencing an invasion of foreigners that are seemingly unconcerned about our financial problems, and send a great deal of the money they earn here, back home to their country often without paying taxes. The immigrants of the past did not behave in this manner. Also, the number of younger people working was a much higher percentage compared to those retired. Another thing to consider is that most of the debt was owned by average Americans, compared to today when our currency and therefore our sovereignty is at the mercy of the Chinese. Lastly, the mismanagement of our resources by the federal government coupled with the huge increase in untouchable entitlements leave us in a situation that requires a choice between draconian measures or default on our debt. In my mind this is an unspeakable evil.