Janet Yellen - Make America Argentina Again!
Given US present debt, and reasonable projections of spending - the ONLY way that debt could be 1% of GDP is if interest rates go back to 1% or lower.
Transitory rape.
“WHAT ARE INTEREST COSTS ON THE NATIONAL DEBT?
“In 2022, the federal government spent $476 billion on net interest costs on the national debt. That total, which grew by 35 percent from $352 billion in 2021, was the largest amount ever spent on interest in the budget, and equaled nearly 2 percent of gross domestic product (GDP). Interest costs are on track to become the largest category of spending in the federal budget — but what comprises the government’s net outlays on interest, and what affects the size of such costs?
HOW MUCH DOES THE GOVERNMENT SPEND ON INTEREST?
In the late 1970s, the increasing national debt and higher interest rates led to a boost in interest costs, which reached a historic high of 3.2 percent of GDP in 1991 (looking at interest costs as a percentage of the economy allows for a standardized comparison over time). But smaller budget deficits and lower interest rates decreased that ratio over the following decade. Between 2007 and 2020, outlays for interest remained steady at around 1.5 percent of GDP (even though borrowing related to the financial crisis and pandemic was quite high), mostly because of low interest rates. But due to the recent rise in inflation and interest rates, as well as the mounting public debt, interest payments have grown rapidly over the past two years, and they are projected to continue growing. The Congressional Budget Office (CBO) projects that interest costs will exceed their previous high relative to the size of the economy, reaching 3.2 percent of GDP ($1.1 trillion) in 2029.
https://www.pgpf.org/budget-basics/what-are-interest-costs-on-the-national-debt
Who are the interest beneficiaries, bond holders?
B House should pass appropriations for specific functions and make them smaller than in the past. They should avoid omnibus bills the merge frills into must have legislation.
Biden, Schumer, Senate R and D should accept that the pain of inflation is worse than the paid of less spending.
Furthermore, if we were all more productive we would pay more taxes. The government is killing productivity with its massive increase in nuisance regulations.