Orthodox economics suggests two ways in which things could go wrong. When an economy is running at close to full tilt, so that firms are borrowing and investing as much as banks are willing to lend, a government can only borrow by outbidding private firms for financing. Government “crowds out” private activity in such cases, hurting growth. What is more, as debt accumulates, lenders may ask the government to pay higher interest rates to compensate them for the increased risk of default. These higher rates can tip a government into fiscal crisis, as market jitters raise borrowing costs, further spooking markets. The government must then accept draconian austerity policies, higher inflation (as it prints money to cover its bills) or default.
A long list of policy positions and explanations that will give candidates ideas to use for their own positions.
About $700 billion per year
More than the 8 next largest world powers
Cut it in half and you could give every American $900/year
We have bases in 80 countries, with 200,000 deployed troops, costing $150 billion per year
The United States has more government debt than any other country analyzed
As a share of its GDP, Japan’s gross debt far exceeds that of all other nations analyzed
Norway’s GDP far outweighs its net debt
Brazil spends more than any other country analyzed on debt interest payments as a share of revenue
Debt as a percentage of GDP increased in 34 of 43 countries between 2006 and 2016