Current debt is completely fine. 1.3x your income is not that high actually. A couple with a new mortgage can be at like 600% of their income in debt and still not even be sub-prime, if they have a good job (the USA is like the guy with the best job of all, normally)
It WON'T be if we print trillions and trillions of dollars instead of just repealing stupid tariffs etc. and no longer "have a good job" anymroe in a depression, etc. But as of November 2024 under normal procedures and business as usual, it was not a meaningful threat at all.
The issue we face is even if tarriffs are repealed, other countries are not just going to be so willing to just jump right back into trading with the US. They are looking to trade with other countries because they know the US can just flip back to trade wars in a matter of years. We may very well never see the level of relative economic prosperity (relative doing a lot of lifting here because a lot of people are poor as shit here still) that the US has ever again. The Great Depression and Recession were bad, but the US did not cut off trade partners world wide during those periods. This is going to do what I believe is irreversible damage.
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u/Krisevol 1d ago
Yup we will eventually collapse due to debt