O The US national debt has soared from $3.4 trillion (33.7% of GDP) in 2000 to $32.3 trillion (over 100% of GDP) currently.
O The burden of debt interest payments has also doubled from 11% of tax revenue in 2000 to 21.5% over the last 10 months.
* Even in a state of full employment, the US continues to run an annual fiscal deficit of about 6% of GDP.
O The main causes of fiscal deterioration are the increase in spending related to the aging population and the reduction in tax revenue due to tax cuts during the Bush, Obama, and Trump administrations.
O While the current administration has implemented some debt swaps and government efficiency policies to reduce the deficit, these measures have had limited effect on meaningfully reducing the fiscal deficit.
O Selective taxation of the wealthy is being discussed as a realistic solution, but for real fiscal improvement, broader income tax or consumption tax increases are needed.
Recently, US media outlets have been criticizing the government debt crisis.
The US's chronic fiscal deficit and the expansion of treasury bond issuance will lead to 'rising US long-term interest rates', 'increased volatility in the value of the dollar', and 'a valuation burden on the global stock market', right? ㅜㅜ
It seems unlikely that this debt problem will be solved in the short term, which is frustrating.
