American Institute for Economic Research

I'm in Washington, D.C. this week giving a policy brief on the consequences of federal deficits and debt. In the fiscal year that just ended, the federal government ran a deficit of nearly $2 trillion, which is about $5,800 for every American. How do debt and deficits impact average Americans? 1. Interest costs are crowding out everything else. Washington paid more than $1.3 trillion in interest on the debt last year, roughly $4,000 per person, and that's money not going to roads, research, defense, or tax relief. 2. Borrowing costs ripple into daily life. Heavy government borrowing can push up interest rates, which shows up in mortgages, car loans, credit cards, and what small businesses pay to grow. 3. Less room to respond to the next crisis. With debt now above $40 trillion, we have less fiscal cushion for the next recession, pandemic, or emergency. 4. Today's deficits impact future choices between higher taxes, spending cuts, or more borrowing, and younger Americans carry most of that obligation. Looking forward to good conversations this week about how we change course. How do you suggest we get our fiscal house in order? #FiscalPolicy #NationalDebt #PublicPolicy #Economy