By JOSH BOAK (Associated Press) WASHINGTON (AP) — For all the sound and fury about raising the nation’s debt limit, most economists say federal borrowing is not at a crisis point ……
By Josh Boak | Associated Press
The political jousting masks contrasting realities: Today’s $31.4 trillion national debt does not appear to be a weight on the U.S. economy, but the debt’s path in the decades to come might put at risk national security and major programs including Social Security and Medicare. But the debt challenge will keep unfolding over time, meaning that choices may become more severe as the costs of Social Security, Medicare and Medicaid increasingly outstrip tax revenues.
Given his estimates, Smetters said, he worries that investors lending to the U.S. will pull back “if we don’t do something before the 2030s, pretty boldly.”First of all, the costs of servicing the debt have fallen over time. Investors are charging less to lend to the federal government. This has occurred even as the national debt has climbed almost nine-fold since 1991.
House Republicans favor a path toward a balanced budget that their leaders — including McCarthy — have yet to publicly detail, while Biden wants to increase the borrowing cap without preconditions. “We haven’t seen a plan from Republicans — what’s their plan?” White House press secretary Karine Jean-Pierre asked reporters at Friday’s briefing. “They want to cut, cut, cut, but they’re just saying this rhetoric that is incredibly dangerous.”
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