This means more federal tax revenue is going toward interest payments. The obligation ate up about 30 cents of every tax dollar in the first three quarters of fiscal 2023, compared with less than 22 cents over the same period in the two prior fiscal years, said Jerry Dwyer, an economics professor emeritus at Clemson University…
…The Congressional Budget Office’s long-term projections provide a glimpse into how much larger net interest payments could grow. They are expected to hit $1.4 trillion by fiscal year 2033 and $5.4 trillion by fiscal year 2053, according to an agency report issued in July.
Once upon a time, there was a plan. When prompted, Greenspan started whining about turmoil in financial markets caused by an inadequate supply of government debt. Multiple rounds of tax cuts for the “JCs” took care of that problem.
“The most recent projections, granted their tentativeness, nonetheless make clear that the highly desirable goal of paying off the federal debt is in reach before the end of the decade.” (meaning 2010)
GDP is partly ‘funded’ by deficit spending, so I would expect the ratio of debt to GDP to keep some kind of relationship. Zimbabwe’s GDP must have rocketed in the past few years.
What really matters is how the rest of the world sees the USA’s ability to service that debt, which is rapidly becoming a rather obvious Ponzi scheme:
Lets hope it’s no sudden collapse, just death by a thousand cuts.
