It is incredible that in a country as rich as the United States there are so many poor people. We need more government spending on housing, not less, to end the national disgrace of millions of homeless people. In sum, we need a program of people's democracy in order to combat the ills of capitalism that grow from the national debt, to combat the narrow and outmoded standard of bourgeois democracy, and ultimately to combat capitalism itself in the cause of socialism. Here the national debt is compared to the gross national product - the value of all goods and services produced in the United States in one year. The debt column in the table below includes all categories of public and private debt.
Private debt breaks down into household and business debt.
Federal Reserve Bank of NY Liquidity is disposable funds of all types that are available to go into one kind of investment or another. It includes cash, checking and savings deposits, money market funds, timed deposits, etc. Reagan took office and instituted his policy of huge deficits in January of 1981. Note that liquidity grew faster than debt in 1980 and 1981. The inflection year is 1984, three years into Reagan.