‘Increasing national debt to $34 trillion is a dangerous situation for the US economy’
[ad_1]
New York (Uttam Hindu News): The US government’s rising national debt of $34 trillion is a “boiling frog” for the US economy, as the government spending bill exceeds its revenues by the early 2030s, according to estimates by the Congressional Budget Office. There will be more.
JPMorgan warned: “But the US appears unlikely to cut its discretionary spending any time soon.”
JPMorgan warned that America’s $34 trillion debt mountain could be a “boiling frog” phenomenon for the economy, as higher deficits and rising debt service costs could easily become unsustainable.
The boiling frog situation is similar to when people fail to act on a ballooning problem, causing it to become so severe that it boils over.
“A frog dropped into boiling water may jump out, but if the water boils slowly, it is too late for the frog to know that the water is cooking”.
JPMorgan said the age-old metaphor could easily be applied to America’s debt situation when forecasting the outlook for 2024.
Economists have been deeply concerned for years and have repeatedly called on the government to change its spending patterns, but bankers’ demands are now louder than ever as the government continues to borrow record amounts. Is.
The U.S. national debt will hit a new high of $34 trillion in January after lawmakers lifted the ceiling last year to prevent debt repayment defaults on interest.
The US debt situation will worsen in the coming years, according to the Congressional Budget Office, which estimates that the government’s entitlement spending, mandatory spending, and net interest payments on the debt will exceed the government’s total revenue by the early 2030s. .
[ad_2]
Source link
