Thu April 24, 2014
Paying down our national debt's interest on WDIY's Economic Pulse
Our national debt is now larger than our GDP, how are we going to pay the interest on such a large debt? Asks Dr. Kamran Afshar.
The National Debt is 101.5% of the country’s Gross Domestic Product, not dissimilar to the latter half of the 1940s, when the US economy came out of the Great Depression and WWII had ended. Interest rates were just slightly higher than today’s rates, and the interest payment on the national debt was less than 2% of the GDP, despite the fact that the debt was 21% higher than the GDP of the time.