According to reports, the debt of the US Federal government just surpassed $31 trillion this year. This is the highest level it has ever been and nearly $8 trillion was added to the debt since Joe Biden became president in 2020.
Of course, this is now being compounded by higher interest rates that are being raised in an effort to combat inflation. These higher interest payments will need to be paid with either higher taxes and/or reduced government spending.
Owen Zidar, a Princeton economist, explains that rising interest rates will exacerbate the nation’s growing debt issues and make the debt itself more costly. The Federal Reserve has raised rates several times this year in an effort to tamp down inflation.
“I think the point here is if you weren’t worried about the debt before, you should be — and if you were worried before, you should be even more worried,” Zidar said.
According to another report, inflation has cost the average American family nearly $5,000 over the past two years and a recent poll suggests that 82% of Americans consider inflation as an “extremely or very important issue.” READ ‘A $5,000 Paycut for Families’: 82% Worry About Inflation Heading into Midterm Elections