Economists Warn We Can't Keep Ignoring the National Debt Forever

With COVID-19 ravaging the country and government pandemic lockdowns devastating our economy, the national debt has understandably slipped to the back of many Americans' minds.

Even before the potential passage of President Biden's $1.9 trillion stimulus proposal, the national debt officially exceeded the size of the economy.

Of course, the government drowning in debt likely isn't going to affect the average American tomorrow.

"Too many people believe interest rates can never rise again, or do not realize that nearly the entire national debt would reset into the higher interest rates," he said.

"With these debt trajectories, interest rates are going to take off eventually," said de Rugy, a Mercatus Center senior fellow.

"We therefore engage in a step up in the level of debt after each crisis, which has worsened our starting point as we are now sailing into an unprecedented fiscal tidal wave of debt as a result of entitlement commitments made to an aging population."

At some point, the consequences of our runaway national debt will become too punishing to ignore.

https://fee.org/articles/economists-warn-we-can-t-keep-ignoring-the-national-debt-forever/?utm_source=zapier