The Debt Situation and the Government

larry summers this morning say that uh, the deficit situation and the government, you know, our books are it's worse than he's seen during his time in washington. Are you what do you think about that? Look I am worried But i'm not Um,. You know, how does the deficit hurt the economy? It hurts the economy by driving up interest rates Crowding out activity and other sectors of the economy The real interest rate right now on 10 year treasuries is 1.5 That is much higher than it was in 2019 when it was basically zero but still lower than where it was for most of the last several decades.