US debt

Reading about what seems to be the annual debt ceiling extravaganza in the US, I came across the Treasury website at reference 1 - which struck me as a good example of how economics can be made a bit more accessible to us regular types who are not versed in the lingo of the economists. I have no idea whether our own Treasury offers anything comparable.

I think the chart above is in cash terms, that is to say not adjusted for inflation, and while it looks fairly horrendous, US total debt is only about 140% of GDP, which is high but not unmanageable and costs around 10% of government revenue to service. Two thirds of this debt is owned by people or entities in the US, perhaps pension funds, and a lot of the balancing third is held by China or Japan. In the UK the comparable figure is around 100% of GDP.

But one can see how the Republican obsession with getting debt down gets traction.

References

Reference 1: https://fiscaldata.treasury.gov/americas-finance-guide.