KenH
Well-Known Member
‘ “The debt is projected to go from $30 trillion to $200 trillion over the next 30 years,” said Riedl. “That will cause interest rates to rise. Within a decade, interest is going to be one third of all of your taxes, and in a couple decades, interest could be 80% of your taxes.”
If most of the country’s money is going to paying interest on the debt, it can’t be invested into growing the economy, or filling potholes, or improving schools. It’s just going to pay interest. In cases like that, an economy will typically start to shrink: Services shut down, things stop working, businesses stop growing, they start laying people off.
So how long do we have before this happens? According to Kent Smetters’ model, about 20 years. ‘
- rest of article at Economists made a model of the U.S. economy. Our debt crashed the model
If most of the country’s money is going to paying interest on the debt, it can’t be invested into growing the economy, or filling potholes, or improving schools. It’s just going to pay interest. In cases like that, an economy will typically start to shrink: Services shut down, things stop working, businesses stop growing, they start laying people off.
So how long do we have before this happens? According to Kent Smetters’ model, about 20 years. ‘
- rest of article at Economists made a model of the U.S. economy. Our debt crashed the model