Trump juggles with USA economic ills, but the fundamental problem remains.

[TorquayFan]

Just to set the context, the rich USA has an average AFTER TAX income p.a. of about $55,000 which compares to China, about $12,000 , Europe around $30,000 and India/Thailand about $7,000, (in ALL these examples, a high percentage of the people are still relatively 'poor', or desperately poor, a function of inequality).

 

If my sums are right, the USA's debt of $27 trillion, equates to c.$80,000 per man, woman and child, (excluding accrued State pension commitments). That's a massive National Debt, accrued to support unearned standards of personal living.

 

$80,000 per person therefore, has been consumed by each citizen, funded by borrowed money. The question is, can that go on forever? I confess it seems unlikely to me, given that the borrowed money comes significantly from China, Petro States and so on. (In fact, if China starts selling short term bonds now the prospects for the USA are grim).

 

The USA 'standard of living', has become an entitlement which will be hard to moderate - political dynamite in fact. But how do you escape the trap, if you can't go on borrowing indefinitely? (BTW the USA is not the only Country on this hook, e.g. the UK and mainland Europe).

 

In short, a lower standard of living in highly borrowed nations, is inevitable, in the long term. Politicians should be talking, about THAT !

 

Any ideas Guys ?