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'Real economic growth' being measured by dividing the total debt, public and private, by the GDP.
Since debt is a WEALTH DESTROYER, it only makes sense to do this. Over the decades, we've had to take on more and more debt to get less and less GDP growth:
1980: $1.77 of debt for every $1 of GDP
1990: $2.54 of debt for every $1 of GDP
2000: $2.73 of debt for every $1 of GDP
2010: $3.67 of debt for every $1 of GDP
Now: $4.14 of debt for every $1 of GDP
The reason why it takes more and more debt for GDP growth is because we are reaching the limits of growth. The global ''Holy Growth and Debt Empire is floundering badly because infinite growth and infinite debt expansion are impossible in a finite realm.
We are never returning to the "good ol' days" of 2019. Those levels of consumption and activity are gone for good. From here on out, there will only be a horrific economic decline. It doesn't even matter what happens to Covid at this point.
Yes, as a nation we have routinely spent about 6% more than we produce since the late 1980s. There really hasn’t been any organic growth in the economy as evidenced by real wages remaining flat. The deal that Clinton, Rubin and Greenspan made with China in the mid ‘90s essentially exported our inflation and hollowed-out the U.S. industrial base.
More importantly, population has been growing faster than GDP for quite a while. GDP per capita is actually falling, ie- we're getting worse off yr by yr.
Money numbers can be illusions since it can be created out of thin air and destroyed.
IMO the most important point is lifestyle. Maybe difficult to quantify, but how is that compared to your previous date of choice?
Its how much you really own. If I take out enough debt I can have a millionaires lifestyle which can all come crashing down if I miss a few payments.
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