(The Center Square) – The federal government spent $1.8 trillion more than it collected in tax revenue in fiscal year 2024, according to figures released Friday by U.S. Treasury Department.
Growth doesn’t matter as long as people still treat the currency like it has value. Most of that debt is owed the the people of the United States, and as long as the US govt continues to pay interest on T bonds and make Social Security payments people will continue to have confidence in the system.
Take a look at Japan as a more advanced example of this, with a larger debt as a percentage of GDP than the US and still maintainjng a sustainable economy despite population shrinkage
Growth doesn’t matter as long as people still treat the currency like it has value. Most of that debt is owed the the people of the United States, and as long as the US govt continues to pay interest on T bonds and make Social Security payments people will continue to have confidence in the system.
Take a look at Japan as a more advanced example of this, with a larger debt as a percentage of GDP than the US and still maintainjng a sustainable economy despite population shrinkage