FriendlyFire
Codex WMDicanious
But tax cuts pay for themselves /s
Whoever the next Democrat President is screwed with close to 1Trillion in debt repayment per year. The irony is that much of this debt was flushed down the drain on wars and tax cuts for the rich. I suspect that little timmy is about to get it good and hard while Republicans will do everything possible to block tax increases, shut down the government and scream like hycrocrites when the bill come due to be paided.
Whoever the next Democrat President is screwed with close to 1Trillion in debt repayment per year. The irony is that much of this debt was flushed down the drain on wars and tax cuts for the rich. I suspect that little timmy is about to get it good and hard while Republicans will do everything possible to block tax increases, shut down the government and scream like hycrocrites when the bill come due to be paided.
As Debt Rises, the Government Will Soon Spend More on Interest Than on the Military
The federal government could soon pay more in interest on its debt than it spends on the military, Medicaid or children’s programs.
The run-up in borrowing costs is a one-two punch brought on by the need to finance a fast-growing budget deficit, worsened by tax cuts and steadily rising interest rates that will make the debt more expensive.
With less money coming in and more going toward interest, political leaders will find it harder to address pressing needs like fixing crumbling roads and bridges or to make emergency moves like pulling the economy out of future recessions.
Within a decade, more than $900 billion in interest payments will be due annually, easily outpacing spending on myriad other programs. Already the fastest-growing major government expense, the cost of interest is on track to hit $390 billion next year, nearly 50 percent more than in 2017, according to the Congressional Budget Office.
Deficit hawks have gone silent, even proposing changes that would exacerbate the deficit. House Republicans introduced legislation this month that would make the tax cuts permanent.
“The issue has just disappeared,” said Senator Mark Warner, a Virginia Democrat. “There’s collective amnesia.”
The combination, say economists, marks a journey into mostly uncharted financial territory.
Interest as a Share of the Budget
Interest payments will make up 13 percent of the federal budget a decade from now, surpassing spending on Medicaid and defense.
“When rates went down to record lows, it allowed the government to take on more debt without paying more interest,” Mr. Goldwein said. “That party is ending.”
Deficit hawks have warned for years that a day of reckoning is coming, exposing the United States to the kind of economic crisis that overtook profligate borrowers in the past like Greece or Argentina.
But most experts say that isn’t likely because the dollar is the world’s reserve currency. As a result, the United States still has plenty of borrowing capacity left because the Fed can print money with fewer consequences than other central banks.
https://www.nytimes.com/2018/09/25/business/economy/us-government-debt-interest.html?action=click&module=Top Stories&pgtype=Homepage