Re: NBC: Generation Debt


"SMBalloon" <smballoon@xxxxxxx> wrote in message
news:b51t62tsv5tdfj7e04g2fi7uesgldfj4hl@xxxxxxxxxx
On Fri, 19 May 2006 21:41:27 -0500, "gumboman" <noemail@xxxxxxxxxxx>
wrote:

3. Do you really want to use Reagan? Let's start slow. What was the total
amount of accumulated public and private debt in November, 1980 and what
is
the total amount of accumulated public and private debt today?

In 1980, the gross federal debt was 33.3% and the percent of debt held
by the public was 26.1%. In 2004, the gross federal debt was 63.7%
and the percent of debt held by the public was 37.2%.

But let's also look at some other figures so as to put things in
perspective. In 1980, inflation rate was 13.58%. The unemployment
rate was 7.18%. The misery index (inflation rate plus unemployment
rate) was 21.76%. In 2005, the unemployment rate was 5.08% and the
inflation rate was 3.39%. The misery index was only 8.47%. In 1980,
average 30 year mortgage rate was a whopping 13.74%. In 2005, it was
only 5.87%.

Which year do you think was preferable?

1980. I buy a house that appreciates at 13.58% and I pay 13.74% for the
loan.

In 2005, I buy a house that appreciates at 3.39% and I pay 5.87% for the
loan.

If everything stays static from each respective year the house costs me much
more in 'real' terms in 2005.


I posted a paper the other day for you from a Republican economic
forecasting firm that went through all the changes in how things are
calculated over the years. IIRC correctly he wrote that if we calculated
unemployment the same way today as we did in 1980 the rate would be over
12%. He also went through all the changes in 'market basket' purchasing
power over the years. According to him your figures are WAY off.



JH


.

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