Rising debt will hurt our economic prospects and our ability to invest in the future
What does the national debt have to do with your wallet? Quite a bit, actually. An increasing national debt could cause an increase in the cost of borrowing for everyone, making mortgages and private business loans more expensive for individuals – making it harder for Americans to buy a home and find a good-paying job.
According to calculations based on data from the nonpartisan Congressional Budget Office, the current trajectory of the federal debt will reduce a four-person family’s income by an average of $2,000 in 2027, rising to $8,000 in 2037 and $16,000 in 2047. That’s money that won’t be spent in the economy, or invested for vital priorities like education and retirement.
A soaring national debt will crowd out crucial investments in priorities like health, education, infrastructure, and innovation.
In just over a decade, interest costs will become the third largest category in the federal budget, trailing Social Security and Medicare. And by 2047, interest costs will more than double what the government has typically spent on research and development, infrastructure, and education combined.
It’s not complicated: Whether you’re passionate about healthcare, higher education, clean energy technology, or national defense, you have a vested interest in making sure we get our fiscal policy on a sustainable path.