You’re busy. So busy you barely have time to read these words. So why should you care about the U.S. debt? Does it affect your life?
Unfortunately, high government debt is having more of an impact on each of us than we realize. Heritage’s Romina Boccia explains that high levels of federal debt are linked to all of these problems for Americans:
Higher interest rates on mortgages, car loans, and other loans. For many people, this means having to wait to buy a home. High interest rates on loans can prevent people from getting a loan to start a business, make home improvements, or further their education.
Higher inflation. We’ve already seen food prices rise over the past few years. Higher inflation hits the poor and middle class hardest, because hard-earned dollars don’t go as far. Food, clothing, and medical care all cost more. Seniors who are living on fixed incomes can see their savings dwindle. People who are in the middle class can start slipping toward the poverty level.
Keeping the economy down—and driving it down further. Deficit spending by the government is not separate from the economy; in fact, it drains money from private savings, which means fewer people are investing in the economy. In short, high debt kills jobs. It lowers wages and salaries as it drags the whole economy down.