U.S. Government Debt Is At Record Highs And Will Likely Go Higher
What Are The Implications Of This?
Federal debt is at record highs thanks to all the fiscal stimulus that’s being used to keep households and businesses afloat in these trying times:
Right now, it’s easy to look past all this debt accumulation. We honestly have no choice. Our country’s bungling of this crisis has put a ton of people’s lives and livelihoods in jeopardy.
But when it’s over (whenever that is), it will be time to pick up the economic pieces. Before then, it would be prudent to spend some time thinking about what the impacts of this unprecedented debt binge will be on the country, its economy, and its citizens.
How To Think About Federal Debt
Public debt (government borrowing) is different from regular debt (individual or business borrowing). When individuals or businesses issue too much debt relative to their incomes, it’s pretty obvious what will happen — eventually they go bankrupt (usually due to a negative shock to income).
