U.S. NATIONAL DEBT: WHAT DOES IT MEAN TO AVERAGE AMERICAN?
For the first time in U.S. history, the national debt has risen past $22 trillion.
For most of us, this number may seem insignificant, because in our daily lives we have not seen the effect of the national debt.
Whether you can feel its effects on your life or not, the national debt actually matters to every U.S. citizen.
So how the national debt affects consumers, and why should the average American care about how much debt their nation owes?
Here is how the national debt is affecting Americans today:
- A rise in interest rates
- Higher taxes
- Lagged economic growth
- Fewer job opportunities
- Direct impact on wages
- Weak job markets
Rising Interest Rates
Increasing interest rates can also lead to increased inflation and upward pressure on consumer interest rates on items such as household mortgages and personal loans.
This means you will end up paying higher interest on your home, credit cards, auto, and all other lending products when interest rates rise.
Weak Job Markets
Higher national debt means, little economic growth. This means fewer jobs are created with government spending.
When the government can not repay its debt by typical means, it turns to raise taxes for consumers and property owners.
So, how do you think the national debt has impacted your work and personal life?
Let us know Its impacts on your business, the future of your kids, your retirement plans and more.
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