Time to freak out about the national debt
The rising national debt and interest rates are becoming a pressing concern as they negatively impact the budget deficit and inflation. Experts agree that inflation, interest rates, and government borrowing are interconnected, yet there is little consensus on how to address these issues. Policymakers in the U.S. and other countries are urged to take the situation seriously before it escalates further.
- ▪Interest rates on long-term U.S. government debt have reached their highest levels since before the Great Recession.
- ▪The increase in government borrowing costs is worsening the budget deficit and generating inflationary pressure.
- ▪Political leaders across various countries are hesitant to implement fiscal austerity despite the growing severity of the debt problem.
Opening excerpt (first ~120 words) tap to expand
Time to freak out about the national debtThe longstanding bill is coming due.Matthew YglesiasMay 27, 2026∙ Paid1ShareA trader pauses at his desk ahead of the closing bell on the floor of the New York Stock Exchange. (Photo by Drew Angerer)Last week, interest rates on long-term U.S. government debt reached their highest levels since before the Great Recession of 2008. How exactly inflation, interest rates, and the budget deficit relate is unfortunately one of those technical economics questions that experts disagree on. Trying to puzzle through the relationships here seems unlikely to persuade anyone or sell newsletter subscriptions. Specifics aside, however, everyone does agree that they are in some way intertwined.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Slow Boring (Yglesias).
Discussion
0 commentsMore from Slow Boring (Yglesias)
