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America’s Wealth Hinges on Its Ability to Borrow Big – or Else

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  • Without debt, U.S. GDP per capita would plunge to a negative
  • Government borrowing to average 109% of GDP over next 5 years
Gold bars sit in a vault at the United States Mint at West Point in West Point, New York. 

Gold bars sit in a vault at the United States Mint at West Point in West Point, New York. 

Photographer: Scott Eells/Bloomberg

The U.S. economy is consistently ranked among the world’s strongest. But cut off its addiction to debt and exhaust its gold and currency reserves, and a very different picture would emerge.

The nation’s health as measured by gross domestic product per capita would plunge into negative territory without its dependence on borrowed money, according to data compiled by Bloomberg.