The article published before this article was titled: ” President Trump Will Initiate An Eisenhower Economy If Re-Elected in 2020. ” I received a number of comments about this article. The basic thesis of the article was that if re-elected, President Trump will not only continue to increase a growing economy in the U.S. for four years, but Trump will also attempt to produce a yearly budget surplus for his last four years.
The economists use a ratio of National Debt to GDP ratio in evaluating economic activity in countries around the world. Those individuals in finance use this ratio to help their investment strategy when investing in stocks and bonds issued by countries in the world.
Here are a few examples of the National Debt to GDP ratio of some countries. (Editors Note: GDP is defined as the total sum of the market values, or prices, of all final goods and services produced in a country during a period of time, usually one year. ) ( Note 2: A higher percentage indicates a high debt level in relation to the economic activity of the country.) 1) Japan=237.54%; 2) Venezuela=214.45%; 3) Sudan=177.87%; …. 13) United States=106.70%…… Finland=59.88%… Germany=56.93% .. China=55.36%.
Bahrain has a ratio of 100.19%. This means that Bahrain’s debt is almost equal to its GDP. The same for Belgium with a ratio of 99.57%.
It has amazed me for a long time that the ratio in Japan of about 237% did not create an economic crisis. In a way Japan has been able, in my view, to maintain this high debt level by decreasing the net wealth of the citizens in Japan. Venezuela with a debt ratio of about 214% is for all practical purposes in a state of bankruptcy. Germany with a ratio of about 57% is the economic powerhouse of Europe.
The GDP formula involves the use of imports and exports to a country. President Trump’s phase one trade deal with China will lower the U.S. ratio from about 107% just by creating a better deal for the U.S. with China.
While Trump’s economic policies were good for all Americans in his first term, his second term( if re-elected) would be even better for the American People. Sadly the fake news media does not bother reporting on economic activity because: 1) They do not understand it, and 2) Americans seem more interested in what color shoes Ms. Trump is wearing. Trump’s greatest asset is his amazing ability to point out, in very understandable terms, how his policies have benefited the American Citizens.
R. Van Conoley