National Debt and GDP has been in the news lately as US Fiscal debt has be become an issue for politics in USA.Last eight years the federal deficit has mushroomed from a surplus of 250 billion to 2008 deficit of over a trillion( thousand billion dollars).Mr Obama's latest budget has deficit pegged at 1.3 trillion dollars and being all the expenses on budget is a realistic figure.
If the president was able to wind down the wars in Iraq and Afghanistan we could reduce the defense budget by 10 percent.with economy growing at normal pace by ending the recession we could pare down that deficit by third without taking much of the draconian measures for it.As the savings rate in us grows to ten percent ( encouraged by tax free interest on saving accounts).I can see that the foreign ownership of national debt can be reduced from current 20 percent to 5 percent in no time.This will protect the us capital being wiped out and reward the savers in America.New culture has to start where Americans can save and build wealth rather than buy gadgetry built in far places just fulfil the gaps in souls with material things.
Japan has run the national debt at 170 percent of the GDP .She has the highest per capita income in the world.Interesting thing about this debt is that it is owned by the people of Japan so you do not hear much about it as no other nation seems to have a leverage because of it.Japanese system has enough strength and rumor mills are not very active and are not encouraged to scare the public.People are more secure as the system adequately provides for needs of young and old alike.No body is left out.
In USA system does not protect the poor and young enough they are at least not sure and leaves them uncertain.Inadequacies in health care delivery has left majority of people paranoid and jittery.By providing health care for all and tax free interest saving up to 5000 dollars will have the desired effect of increase in savings and peace of mind for the public.Us debt to GDP ratio is around 60 percent.
India is running the budget deficit of 60 percent of GDP .90 percent of This is carried by Indians and 10 percent by world bank.India's foreign investments and the foreign investments in India are about the same magnitude.This is good for the global trade.
China runs much smaller budget deficit.It shows its strength .China with lack of private ownership , and with the state leasing all land for 60 years have a revenue stream which will have to be renewed with passing of every adult( considering adult life is 60 years).
Sadly even in America with the property taxation property is a continuous source of income for the state.