I believe that Americans are unable to use basic mathematics as it pertains to economics and personal finance. But, I find it most disconcerting among those individuals who are reasonably educated. You can not spend more than you make. Period. Oh, but you say I can borrow and/or max out my credit cards. Yes, but all what you are doing is bringing forth current consumption at the expense of future consumption. Soon or later that debt must be paid. Yes, I know a lot of that debt can be caused by medical situations. (That is a separate issue for discussion, which is caused by the medical monopoly in this country.)
Just take our government for instance. (It doesn't make any difference if we are talking about Democrats or Republicans. The both have this encephalon problem when it comes to innumeracy.) That is, since 2011, total federal debt has increased by 27%, while GDP has increased by 14%. Federal debt is increasing nearly double what our economy is producing. Do we, as a nation, have a debt problem? A rhetorical question, indeed; however, the debt problem has permeated every level of society. Once again, you can not spend more that what you make on into infinity.
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