What Happens with the National Debt
The Political Orphanage
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The Effect of Debt on Economic Growth
The interest we pay on the national debt starts to crowd out economic growth. The Congressional Budget Office estimates that for every $1 of new U.S. government borrowing, total investment in the rest of the economy falls by 33 cents. When a nation's debt exceeds 90% of its GDP, those interest payments crowd out private sector spending which slows down the overall economy.
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