US Public Debt is Outgrowing US GDP | Chart of the Week
In this week’s Chart of the Week, we highlight that the economy continues to become less efficient in terms of GDP production for every dollar of debt.
The US public debt refers to the total amount of money that the US government owes to creditors, including individuals, organizations, and foreign governments. This debt is incurred when the government spends more money than it collects in taxes and other sources of revenue, leading to budget deficits that must be financed by borrowing.
On the other hand, US GDP (Gross Domestic Product) refers to the total value of all goods and services produced within the United States during a given period. It is a measure of the size and health of the US economy, and is used to track changes in economic output over time.
The relationship between the US public debt and GDP is often expressed as a debt-to-GDP ratio, which is the ratio of the US public debt to the country’s GDP. This ratio provides a measure of the country’s ability to service its debt obligations and indicates the level of financial risk associated with the debt.
Sources: usdebtclock.org, FRED, BMG Group Inc.