The individual debt to GDP is a bit ingenious. If I make $50 000 per year and take a $100 000 mortgage I have a 200% debt/GDP ratio. I could still have a surplus and appear to have horrible debt.
The American government on the other hand is more like the guy making $50 000, has $50 000 on the mortgage and keeps spending $55 000 per year, year in and year out.
You're confusing deficit and debt. The $5,000 extra you spend in a year is the annual deficit you are running. That contributes to your total debt, which would include a mortgage, car notes, credit card debt, etc.
My point is that the idea that private households spend no more than they take in and that government should do the same is ludicrous. When you take out a mortgage to buy a house, you have just spent more than you are taking in. When you finance a new car, you are spending more than you are taking in. When you take out a student loan, you are spending more than you are taking in.
Sure, but the difference is that in personal spending, the debt is usually for a capital expenditure (School, car, house etc) which in theory should be paid off eventually. This can be quite sound financially, even though the numbers look good. What the federal government debt is closer to taking out a loan to pay the light bill.
