Alexander Hamilton stated in the late 19th century that “national debt, if it is not excessive, will be to us a national blessing.” Though in theory a good notion, American governments since then haven’t exactly followed through on the plan.
Rather, the public debt of the United States is more than $34 trillion, and the country’s debt-to-GDP ratio is approximately 100%. Not exactly the boon that the Founding Fathers had originally intended.
Over the next few decades, younger generations who will be climbing the property ladder will be shocked by any increase in interest rates.
Homeowners and potential buyers have been accustomed to a Federal base rate that is effectively less than 1%, despite the fact that many economists point out that the contentious Fed rate hikes of the 2020s are simply normalizing the rates of many prior eras.
Will America’s National Security Be Impacted By Public Debt?
Experts in the subject have long harbored this dread. When the country’s debt was only $19 trillion more than ten years ago, Admiral Michael Mullen, the former chairman of the joint chiefs of staff, declared that debt posed the greatest threat to national security.
“This is about the security of the world,” Dimon continued. Both a stronger America and a stronger military are necessary. We require it immediately. I therefore consider this to be dangerous for all of us.
“The most important thing about debt to me that people to keep in mind is you need somebody to buy it,” Gomes said to Fortune. “We used to be able to count on China, Japanese investors, the Fed to [buy the debt.] All those players are slowly going away and are actually now selling.”