Doesn't increasing national debt reduce investment and increase interest rates? Trump legislation added $4.7 trillion to debt: watchdog https://thehill.com/policy/finance/477554-trump-legislation-added-47-trillion-to-debt-watchdog
As a proud red blooded libertarian, I'll just blame the next Democrat in office and root on Congress to play peepee games with the debt ceiling. MISSION ACCOMPLISHED
long article gift link will work for everyone Debt Has Always Been the Ruin of Great Powers. Is the U.S. Next? From Habsburg Spain to Trump’s America, there’s no escaping the consequences of spending more on interest payments than on defense. https://www.wsj.com/politics/policy...2?st=DDagS7&reflink=desktopwebshare_permalink
A country with 10 nuclear powered naval carriers isn't going to fall because of too much fiscal spending. Americas debt is what allows for global American hegomony and I don't think libertarians understand this basic principle which is scary given how confident they would explaining macroeconomics.
The list of countries with low debt or good budget deficit ratios is small and not noteworthy. Make of that what you will. If this has been addressed apologies in advance. Didn't read the whole thread.
Debt is at worst neutral, Governments are not businesses they should not turn a profit, our money is not secured by anything other than our word. Doesn't hurt anything to run a deficit, at all. Most people think it is like balancing a check book it is not....there are benefits to owing money. 1. A country you owe money to is not going to attack you, otherwise they won't get paid. 2. We basically only pay interest anyway, doesn't effect average Americans 3. We could literally just MAKE UP money and pay it all off at once, there is nothing stopping us from doing that. 4.Deficits can help an economy recover from an ailing state by providing the spending needed to get the economy back to health. Now too much of a debt and it can hurt, but as @Major mentioned before both Clinton and Obama helped pay it down some. Trump has done the opposite, and will continue to do so. Never understood why people think he is good with money - he is not. DD
Happy Weekend! https://manhattan.institute/article/a-comprehensive-federal-budget-plan-to-avert-a-debt-crisis-2024 How a Debt Crisis Might Play Out The national debt’s share of the economy cannot rise forever. At a certain point, even large global savings markets will be stretched, and investor confidence in the U.S.’s ability to finance its debt will evaporate. Additionally, interest costs will consume an increasing share of tax revenues, creating pressure for unpopular tax increases and spending cuts. It is unclear from whom Washington will borrow as much as $175 trillion (assuming that current tax cuts and spending programs are renewed) over 30 years to cover its projected deficits. China and Japan each hold roughly $1 trillion in U.S. debt and have neither the capacity nor the interest to cover more than a tiny fraction of impending American borrowing.[19] Other countries limit their Treasury holdings, and the Federal Reserve has been trying to shrink its $5 trillion holdings of Treasury debt.[20] That leaves the U.S. financial markets—insurance companies, investors, pension funds, and state and local governments—to cover perhaps $150 trillion in projected Washington borrowing. The impending debt surge has barely begun, and yet a 2023 Wall Street Journal headline had already declared: “Wall Street Isn’t Sure It Can Handle All of Washington’s Bonds.”[21]
The irony of all these jingoist nationalists who are proud of American hegomony b****ing about national debt is so hilarious man. These people don't know what they want. They don't understand the sovereign debt is why the US has this amount of power globally. Me personally, id much rather increase deficits through spending on American people rather than getting into deficits for global hegomony. Social safety nets >>>>> nation defense budget and budgets like USAID to maintain soft power.
latest eg of Inivisible being cluseless as to what he has parroted. for the unteenth time, the US is the only country whose currency is the de-facto global reserve; been that way since the mid 1940s. US's GDP ~~~25% of the world GDP, but >60% of global commerce is transacted using the US dollar. invisible needs to think before he parrot this intellectual dishonesty. which / where is the safest asset that China / Japan can invest in? is there a viable alternative ? most certainly not the BRIC !!
I know you're a lazy shortsighted asshole, but try this one. It is unclear from whom Washington will borrow as much as $175 trillion (assuming that current tax cuts and spending programs are renewed) over 30 years to cover its projected deficits. China and Japan each hold roughly $1 trillion in U.S. debt and have neither the capacity nor the interest to cover more than a tiny fraction of impending American borrowing. That's around 5.5T per year give or take. Which is like 10 Bidenomics!s worth a year for you to swallow.
The question comes down to sustainability. All countries take on debt. But when your interest payments are in the trillions and your middle class/poor are being suffocated and crushed from inflation and housing, you have to scrutinize the spending model. Too much growth without a foundation will result in a catastrophic plunge and finding out the hard way makes recovery longer / harder. The American debt as a percentage of wealth is not a big number but assumes the infinite growth model with no pullbacks. It also inevitably leads to widening income gaps as it's the bottom 95% who get hit by inflation, rising costs and taking on debt the most. Why debt matters -- Interest costs are growing rapidly. Interest costs were $881 billion in 2024 and are projected to rise to $1.8 trillion by 2035. In 2024 alone, the United States spent more on net interest costs than it did on any federal program other than Social Security. Key investments in our future are at a risk. Higher interest costs could crowd out important public investments that can fuel economic growth — priority areas such as education, research & development, and infrastructure. A nation saddled with debt will have less to invest in its own future. Rising debt means fewer economic opportunities for Americans. Rising debt reduces business investment and slows economic growth. It also can lead to increases in interest rates and inflation as well as erosion of confidence in the U.S. dollar. The federal government should not allow budget imbalances to harm the economy and families across the country. Protecting the essential safety net. The unsustainable fiscal path threatens the safety net and the most vulnerable in American society. If the government does not have sufficient resources, essential programs like Medicaid and Social Security could be put in jeopardy. A solid fiscal foundation leads to economic growth. A solid fiscal outlook provides a foundation for a growing, thriving economy. Putting the nation on a sustainable fiscal path creates a positive environment for growth, opportunity, and prosperity. With a strong fiscal foundation, the United States will have increased access to capital, more resources for private and public investments, improved consumer and business confidence, and a stronger safety net.
when addressing the issue of national debt, particularly when comparing the US against other countries, it is intellectually dishonets not to address the reality of the de facto global currency reserve, the US dollars. in its lengthy article, never once did the author mention "de facto global reserve currency", why is that?
The current massive tax cuts, enacted during trump's previous administration, need to end. The main beneficiaries are the billionaire class, a class trump likes to claim he belongs to. Again, the administration will trumpet "trickle down" economics because of trump's tax cuts, which is a GOP fiction. The Senate bill that's passed, while not perfect, at least doesn't "renew" the billionaires wet dream.
Not always. Japan post-WW2: National debt was about 250% of GDP. UK during the empire-building era: National debt was around 250% of GDP. France in the 18th century (Napoleon's wars): National debt reached approximately 200% of GDP. The US national debt is currently around 130% of GDP. p.s. The Project 2025 tax cut proposed by Republicans is forecasted to add $4 trillion+ to the national debt over the next decade.
