April 20th, 2024
Business Insider recently published an article featuring Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing the unprecedented levels of public debt in the US.
This mounting debt poses significant economic risks, including higher inflation, reduced quality of life, and potential financial instability. The need to continuously sell debt to investors is crucial for the US economy, but doubts about the government’s ability to repay its debt may undermine investor confidence, leading to economic repercussions.
“Pretty soon one of the most important things the federal government’s going to be spending money on is not defense, not on education. It won’t be on housing, it’ll be on interest,” Zagorsky adds.
Economists warn that without significant action to address the growing debt, a crisis could emerge within the next decade.
