05-31-2017, 06:50 PM
(This post was last modified: 05-31-2017, 06:54 PM by Eric the Green.)
The danger of the federal debt will increase when interest rates increase. It will be more expensive then to keep and service the debt.
Perhaps the corresponding improvement in the economy could cushion the blow, since interest rates go up if the economy is stronger. If a progressive government returns, taxes will go up then too, which would help the debt and deficit too. Of course, no doubt government spending could increase too, in that case.
Neither Party now dominant is really committed to reducing the debt, although our current Party system could change. But I suspect the national debt will be huge for the remainder of the existence of the USA; however long that is. And large growth in the GNP may be unlikely in the future too, due to population declines and resource limits that are likely. If we go progressive again, though, innovation could increase, and better wealth distribution will help overall prosperity.
Perhaps the corresponding improvement in the economy could cushion the blow, since interest rates go up if the economy is stronger. If a progressive government returns, taxes will go up then too, which would help the debt and deficit too. Of course, no doubt government spending could increase too, in that case.
Neither Party now dominant is really committed to reducing the debt, although our current Party system could change. But I suspect the national debt will be huge for the remainder of the existence of the USA; however long that is. And large growth in the GNP may be unlikely in the future too, due to population declines and resource limits that are likely. If we go progressive again, though, innovation could increase, and better wealth distribution will help overall prosperity.