American debt
reports
Increasing debt for the US economy will have many reasons and consequences, including increased borrowing costs; Because more pressure on interest rates can make the country’s financial situation worse.
US total debt currently is $ 6 trillion and public debt is around $ 6 billion. The cost of debt interest in the United States is more than $ 5 trillion a year, which is more than the Pentagon budget.
, on the other hand, even if tax cuts expire, US debt will reach 5 % of GDP by year 2, which will break World War II.
The Trump administration’s view
The Trump administration claims that tariffs on China in his first period have generated hundreds of billions of dollars in income without affecting inflation or economic growth, and this time it can increase income through tariffs.
The new US government also believes that energy policies, deregulation and cost reduction can increase economic growth and expand the tax base.
Financial experts’ warnings
Ray Dolio , a famous investor, predicts that the US is moving towards a debt crisis and that global financial markets may respond to high volume J . Peterson has also announced that macroeconomic feedback high debt can increase interest rates and make the country’s financial status more critical.
Congress budget office did not evaluate how much such a debt level can be managed, but in the university report Pen Style = “Text-align: Justify”> Warton Span> states that US debt should not exceed 5 % of GDP, as it may distrust financial markets and economic crises. With the increase in financial warnings and the prediction of the debt crisis, US policymakers face one of the biggest economic challenges in their history.
