Wall Street Mav
Wall Street Mav|May 02, 2026 01:23
Growing up is realizing that spending $7 trillion per year, when you only have $5 trillion in revenue, will eventually cause interest payments on the debt (now $39 trillion) to swallow the entire govt budget. As a share of the economy, interest costs will rise from 3.3 percent of GDP in FY 2026 to 4.6 percent of GDP by FY 2036. Over the long term, interest payments will grow to 5.7 percent of GDP by FY 2046 and to 6.9 percent of GDP by FY 2056. For comparison, the 50-year historical average for interest payments is 2.1 percent of GDP. That means net interest-to-GDP will be more than twice the historical average by FY 2036, and more than three times the historical average by FY 2056.(Wall Street Mav)
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