Now we are facing another round of Congressional spending with the new infrastructure bill. The exception to this will be during an economic rebound following a recession, which is typical. With a current debt-to-GDP ratio of 127%, which is expected to rise to 277% by 2029, future economic growth will not be as robust as it has been in the past. According to a 2011 research paper from the Bank of International Settlements – a bank and research hub owned by 63 central banks from around the world, when government debt-to-GDP exceeds 85%, future economic growth is reduced. Simply put, we are leveraging our future to stimulate today’s economy. Yes, America is losing, or perhaps already has lost, control of its public spending. The bad news is that, after we return to normal, future economic growth will not be as robust, primarily due to the burgeoning debt. economy grew by 6.4% in the first quarter of the year. This would put the country’s debt-to-GDP ratio at 277%, surpassing Japan’s current 272% debt-to-GDP ratio. Even without this additional spending, the national debt will approach $89 trillion by 2029 according to. With a current debt exceeding $28 trillion – an increase of nearly $5 trillion in 14 short months, Washington is now debating an infrastructure bill with a price tag close to $2 trillion. national debt is rising at a pace never seen in the history of America. Check out my "Social Issues" light box for more. Colored pencil and acrylic illustration of Government Spending blowing the roof off a capital.
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