The Complex Reality of U.S. Debt: Debunking Myths and Exploring Solutions

The U.S. national debt has reached nearly $33 trillion, with economists divided on its impact. While some argue that debt can be useful for emergencies and large initiatives like infrastructure, others express concern about the ever-expanding debt and its potential harm to the economy. The debt-to-GDP ratio is a key measure of severity, with the U.S. currently at nearly 100%, higher than the recommended 70%. Servicing the debt becomes challenging when interest rates rise, although some argue that higher rates can stimulate the economy by providing additional income to bondholders. The debate continues on how the U.S. should manage its debt and whether it needs to take action.