Have you ever heard of GDP? What does it mean and why should you care?
GDP is short for Gross Domestic Product and in ‘Plain and Simple’ terms it measures a country’s economic health while factoring consumer spending, government spending, business capital spending and net exports. Boring, right?
Here is why you should care…there is a ratio of national debt to GDP. This is a percentage number that indicates that whether a government can repay its debts. The World Bank has stated that if any country allows this ratio to go above 77% for an extended period, economic growth will slow, and the country is at risk of defaulting on its debt.
Can you guess where the US was in 2000? How about today? If you said 55% and 126%, you would be right! The US is a little over the 77%, wouldn’t you agree? Now, what can you as an individual do about this? What can you do to prepare yourself? What do you think could happen? This is just another indicator of where the global economy is heading.
5 Ways to Measure the U.S. Economy: https://www.thebalance.com/u-s-gdp-5-latest-statistics-and-how-to-use-them-3306041