Debt is on the rise — both among consumers and for the government — as well as delinquencies. How much money do you really have to keep buying crypto?
Despite many seemingly positive reports about retail spending or the unemployment rate in the United States, the nation continues to battle several structural challenges that have only grown more severe, with a historic $34 trillion in public debt and a similar high of $1.13 trillion in consumer credit card debt. Alexander Hamilton is famous for remarking that the "national debt, if it is not excessive, will be to us a national blessing," but the scale of current debt raises questions about the sustainability of fiscal policies and their long-term economic impact.
Concerns about the public debt used to be more of a fringe topic that conservatives and libertarians argued about. However, recent remarks by leading figures in the banking sector underscore the gravity of the situation. JPMorgan Chase CEO Jamie Dimon's warning of a global market "rebellion," Bank of America CEO Brian Moynihan's call for decisive action, “The Black Swan” author Nassim Taleb's "death spiral" prognosis, and former House Speaker Paul Ryan's description of the debt crisis as "the most predictable crisis we’ve ever had" highlight the urgent need for a reassessment of the United States' fiscal trajectory.
The public's growing anxiety over government debt, with 57% of Americans surveyed by the Pew Research Center advocating for its reduction, reflects a shift in societal priorities towards fiscal responsibility. This concern gains further significance in light of its real-world implications, notably on housing affordability and the broader economic landscape. The precarious state of the housing market, exacerbated by rising interest rates, epitomizes the link between fiscal policy and individual economic prospects: as public debt grows, so too do interest rates.
