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Originally Posted by TommyBoy9

People keep saying "our grandchildren are going to inherit our debt". While its true, its misleading. The fact is each time our government borrows money, which it has been doing like crazy for decades and especially of late, we immediately begin paying interest on that money. Just like when you take a car or home loan, you immediately get charged with interest. Same thing. And rather than the nice ~1-2% loan rate Obama and Trump had, Biden is borrowing at ~5% rates, meaning not good news for us taxpayers.

The Congressional Budget Office has already announced that this year, we will pay more interest on our current debt than our ENTIRE defense budget! They project that in 5 years $.50 out of each $1.00 we pay in tax will go to pay the interest on our debt (due to current borrowing rates - see those generous student loan payoffs, and crazy handouts, aren't actually free after all).

Without massive change, within a decade or so they project 100% of our tax revenue will go to pay the interest on our debt. No more money for SS, Medicare, Defense, Welfare, etc. Depressing I know, but its the state we are in.

It cost about 2.5% of GDP to service the US debt. The real problem is adding 1 trillion to that debt every 100 days or the equivalence of 10%annually with the current debt at 34 trillion. This can’t be sustained. The US government wins out when we have inflation, because yesterday’s dollar doesn’t cost as much as today’s. It hits the people hard, but politicians bask in it.