The Impact of Interest Rates on Government Borrowing

Government borrowing led to increasing interest costs, causing a strain on the federal budget. Efforts to cut the deficit faced challenges in the past, with moves towards austerity and spending cuts under different administrations. The statement 'Reagan proved deficits don't matter' highlighted a period of low interest rates, influenced by decisions made post-9/11. The prolonged period of low-interest rates continued post-Great Recession until 2022.

Transcript

Play full episode

Transcript

Episode notes

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.

Get the app