The National Debt

[leftyjace]

Is anyone else worried that we’re going to start feeling the effects of “crowding out” with the National Debt, now?

Interesting article:
http://www.concordcoalition.org/tabulation/whats-another-91-trillion

I am also very worried about Trump’s tax plan. Yet another article by the Concord Coalition:
http://www.concordcoalition.org/tabulation/treasury-nominee%E2%80%99s-remarks-raise-questions-about-trump-tax-plan

Last one, from the New York Times:
https://nyti.ms/2kgfH4H

Is anyone else worried about this? Interest rates are going to start going up – it’s just going to happen. CPI was above 2% which mean we may see TWO rate increases before the March meetings. That’s going to increase the cost of servicing the national debt – especially that incurred starting right now.

With the ever increasing portion of the total federal receipts going towards servicing the national debt…I’m officially worried. It’s got to be reaching the point where it will start infringing upon entitlement and infrastructure spending.

[Tony (admin)]

And whatever bad stuff happens the democrats will blame Trump, and the republicans will blame Obama.

[Utah]

It’s always the other guys fault. 

[UtahFanSir]

Thoughts on Trump’s Infrastructure spending by an economist I trust…

Spending on infrastructure…

If Trump cuts taxes again, the deficit will do the same as it did under Bush. Balloon. While the Republicans claim to be fiscal conservatives, I see little evidence of that in behavior.

Since BHO has been vilified for the increase to national debt, consider this…

BHO’s National Debt Scorecard…

[UtahFanSir]

I want Trump blamed for this…

…since The Donald wants to take credit for everything.

[Anonymous]

Rates will go up some.  I work for the Fed and they’re calling for 3 rate increases this year.  That said, they will be limited.  The biggest cap or ceiling on interest rates is a demographic headwind from baby boomers retiring.  When people retire, they don’t spend as much.  Couple that with the historic low job participation rate and you have a big cap on consumer spending Which comprises 70% of GDP.  If consumer spending were growing, then yes the government debt competing against consumers would push rates higher.

I’m not worried at all.  Trump is following a true supply side path: cut taxes and cut spending.  In the past the supply side approach never realized the spending cuts.  Obamateur’s unchecked reign of spending caused severe damage with a doubling of the national debt and we lost our AAA credit rating.  That era is now over.