03-05-2021, 02:50 PM
Big deal. Take the "rule of 72", and divide the rate of growth or inflation into 72, and you get the number of years in which something doubles (at least roughly). This applies to inflation, savings under compound interest, or economic growth. Thus 2% inflation causes one to expect price levels to double in 36 years. Wage increases of 4% a year imply doubled income in about 18 years. Compound interest at 1.5% means that a nest-egg doubles in 48 years.
2.4% growth in federal debt at a compounding rate means that debt doubles in roughly 30 years. I would not sweat that.
2.4% growth in federal debt at a compounding rate means that debt doubles in roughly 30 years. I would not sweat that.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.