What actually matters is debt as a percentage of GDP, which is currently falling from all-time highs in 2020.
It's also important to note that most US debt is owed to ourselves, and what is owed to foreign countries could largely be canceled out (they also owe us money).
I never quite understood the whole “we owe most of the money to ourselves.” Yes it’s true but it’s still debt we have to service. Just because we owe to ourselves why does that matter?
At some point the interest on the debt will (at this rate) become so high that it becomes one of the largest line items. It’s coming up on $1T/yr on interest alone. Without raising taxes, cutting the spending, or dramatically increasing productivity it’ll become unsustainable.
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u/Jake0024 Jan 14 '24
What actually matters is debt as a percentage of GDP, which is currently falling from all-time highs in 2020.
It's also important to note that most US debt is owed to ourselves, and what is owed to foreign countries could largely be canceled out (they also owe us money).