The Ultimate Guide to the 2020 Election: 101 Nonpartisan Solutions to All the Issues That Matter by No Labels

Author:No Labels [Labels, No]
Language: eng
Format: epub
Tags: Public Policy, Political Advocacy, Political Ideologies, Political Science, Political Process, Conservatism & Liberalism, General
ISBN: 9781635766738
Google: 4dauDwAAQBAJ
Goodreads: 54810062
Publisher: Diversion Books
Published: 2019-10-29T00:00:00+00:00

The Problem:

Debt Held by the Public Is $16.1 Trillion

as of December 31, 20182

Annual federal deficit could reach $1 trillion by the end of 2019.

Interest payments alone on US national debt are projected to reach $390 billion this year. That’s almost one quarter of all the income taxes the government took in last year and more than 60% of the entire budget of the Department of Defense.

Putting the Debt in Context

Politicians sometimes like to compare the national debt to a family’s household budget. They will say government is “maxing out our nation’s credit card,” or that it needs to “tighten its belt” just like families do. This is the wrong way to think about it.

The federal government is nothing like a household, beginning with the fact that it can print its own currency. The United States also has the added benefit of being the world’s reserve currency, which means much of the world does business in US dollars. When recessions hit, investors the world over funnel money into US Treasury bonds because they view it as the world’s safest asset. This helps keeps interest rates low for US consumers. There are also times—like during a recession—when it is responsible for a government to run deficits to help stimulate employment and economic activity.

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