This chapter delves into the concept of deficit and the US government's debt, discussing its acceptability due to the country's global reserve currency status. It examines the impact of the financial crisis, the allocation of tax dollars towards interest payments, and the concerns regarding rising interest rates, as well as the effects of tax cuts and the COVID-19 pandemic on the economy.
When the US borrows money, just like any borrower, it needs to pay its loans back with interest.
The national debt right now is $34 trillion and rising. Soon, America will need to spend more each year paying interest on the debt than it spends on national defense.
Today on Bloomberg’s Big Take DC, host Saleha Mosin talks to Bloomberg reporter Liz McCormick and Phillip Swagel, director of the Congressional Budget Office, on what it would take to rein in the US's government's debt spiral.
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