$100T national debt

Investment Analysis Clubs Macro Economic Trends and Risks
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One accountant/economist is saying that if we correctly account for our debt, it is around $100T, not $39T. I’m not sure if this is accountants playing with numbers to achieve a desired appearance, or if it’s really the correct way to do it. I don’t think we could every grow the economy enough to cover $100T. First saw this in Fortune (I think), but this is Yahoo Finance:

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These counts cite the liabilities for SS and Medicare without counting the tax revenues.

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Ah. So it’s not really a proper way to do accounting, then. Surprising given that the article I read said he was a respected economist from Wharton. Or maybe Wharton is overrated.

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Accounting is not a science, it’s an art.

Google AI:

Accounting is widely considered both an art and a science, blending rigorous, technical standards (science) with professional judgment and interpretation (art). While it relies on systematic methods like GAAP to record data, it requires creative application to interpret, analyze, and present financial narratives, often requiring subjective judgment.
Concordia University, Nebraska

Why Accounting is Considered a Science:

  • Structured System: It operates on strict rules, formulas, and frameworks (e.g., debits/credits, GAAP/IFRS).
  • Body of Knowledge: It constitutes an organized body of knowledge with scientific principles of measurement and recording.
  • Mathematical Precision: It utilizes mathematical calculations and data analysis to achieve logical conclusions.
    www.topofmind.work

Why Accounting is Considered an Art:

  • Professional Judgment: Accountants must use skill, experience, and interpretation, particularly when navigating unique situations or making estimates.
  • Interpretation & Narrative: It involves crafting a story about a business’s health, rather than merely calculating figures.
  • Subjective Choices: Choosing methods for depreciation or calculating fair value involves, to some extent, subjective choices.
    Efficient Enterprise Solutions

Verdict: It is often described as “both,” or a “scientific art”. The science provides the framework, while the art is the application of judgment to make that information useful for decision-making.
Academia.edu

The Captain

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There are idiots at every school: Wharton, Harvard, Yale. And “respected” is a variable term. This particular theory first came up from the American Enterprise Institute, a hard right think tank that’s been pushing this sort of malarky for years. They’re in favor of “less government” (no social security, no medicare) and the free market and blah blah blah.

Do not expect anything from them except doctrinaire doggerel, regurgitated and spit back no matter what the consequences in the real world.

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He has to make a projection for the US GDP growth rate. Then he decides if the current liabilities for a given period of time will add to the debt.

He is respected. That does not mean it is not Piled higher and Deeper.

Goofy is right on the political front for many of these reports.

The tax football is everything to these guys.

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