About US public debt

Clive Crook, columnist for Bloomberg noted that US public debt has become a taboo subject that is carefully bypassed during the debates by both Trump and Harris. Crook’s note is generally pessimistic about the inevitability of a future default.

And here we can only agree.

Five or seven years ago, economists who warned of the dangers of US spending ramping up were left on the sidelines. The world system has been in a paradigm where the US economy is capable of absorbing any amount of borrowing. However, it turned out that this is far from the case. If you spend more than you earn, sooner or later there are problems.

 

Today, alarmistic statements of politicians and economists have become the norm. However, nothing happens, the state debt continues to grow.

It is clear why US presidential candidates are diligently avoiding the issue of public debt. Both Republicans and Democrats have been enthusiastically pumping it. Any action to lower it will be painful enough and unlikely to please voters. 

It is therefore more convenient and safer to look away from the problem and think that it does not exist. 

#debt #US #economy