American Finances

Written by Nathan White, Paragon Chief Investment Officer

photo by agilitynut

There is currently a lot of talk about what the implications will be for all of the government involvement in the economy. To help put things into perspective I thought it would be good to take a look at the current condition of the country's finances. I am not a doom and gloomer, but I think it is always helpful to know the facts in order to put things into perspective.

• $56.4 Trillion - Current Liabilities and Unfunded Promises of the Unites States Government

            This equates to $483,000 for every American household!

• $11 Trillion - Current National Debt

            50% held by foreign countries and the other half held by the public

• $1.7 Trillion - Projected 2009 Budget Deficit

            The largest as a share of GDP since World War II

In order to service all of these liabilities the government will have to take more from the private sector which means slower economic growth than there otherwise would have been. 

It does not mean that we wont grow (which is why I'm not a doom and gloomer!) but just that the growth will come at a slower pace on average.