The Washington Post:
The US government may resort to measures that could cause public discontent to solve the problem of national debt, which for the first time exceeded $40 trillion.
Modern.az reports that "The Washington Post" wrote about this.
According to the publication, the federal government has spent more money than it has received from taxes for many years. This has led to a continuous increase in the budget deficit and national debt.
It is noted that the yield on US 30-year government bonds has exceeded 5.27 percent. Experts believe that Washington will have to choose between raising taxes or cutting government spending to reduce borrowing. Both options are said to cause serious public discontent. Experts also warn of the risk of a “debt spiral” where debt service costs grow faster than economic growth.
It was noted that the US currently spends approximately $1 trillion annually on interest payments on national debt.
According to the Peterson Institute for International Economics, if reforms are not implemented, the US national debt could reach $50 trillion within 6 years.
