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The growth of government debt and its consequences
The American government budget is not on a sustainable path. The United States is borrowing roughly $7 billion per day to finance its operations, with the deficit heading toward $2 trillion this fiscal year, according to the Committee for a Responsible Federal Budget. And it’s only going to increase as expansionary fiscal policies take effect in the new year. While the United States can find investors willing to finance its debt, a look at the primary budget deficit—the deficit excluding interest owed on past debt—now stands at 3.78% of gross domestic product, which is simply not sustainable. […]