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National Debt Dilemma

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I write often about the state of Ohio’s economy, I study the monthly OBM and LSC reports and analyze the state’s income and expenditures for my own research on a regular basis.  But I don’t often write to you about the national economy.  The Congressional Budget Office reported on Wednesday that the federal deficit jumped 20% in the first 10 months of FY18 and projects that the deficit will reach $793 billion by the end of the year.  The White House estimates that the deficit will surpass $1 trillion next year. Putting aside any partisan bickering about why spending outpaced revenues by more than $116 billion over the same period last year, what does this mean for America’s future?

The CBO also anticipates that in the next 3 decades, we will be spending more on merely servicing our debt that on national defense or Social Security.  While the immediate impacts of government debt on the public are not as pronounced as those of taxes or regulations, government debt can have a insidious affect on our everyday lives.  High government debt drives up inflation and interest rates, burdening future generations by stifling economic growth and discouraging investment.

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