The $34 Trillion Elephant in the Room: Understanding the Negative Effects of the U.S. National Debt and the bright side of the that debt.

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What’s the National Debt Anyway and why should we care?

Before we jump into the negative effects, let’s quickly understand what the national debt is. Simply put, it’s the total amount of money the U.S. government owes to its creditors. Think of it as Uncle Sam’s credit card bill. Over the years, this bill has grown into a monstrous number, and it’s essential to explore why it’s a matter of concern.

Imagine having a credit card with an astronomical balance. What’s the first thing that comes to mind?  The interest, right? Well, it’s the same for our national debt, but on an epic scale. A significant chunk of our federal budget goes towards paying interest on this debt. , the national debt can crowd out other essential government priorities. When a substantial portion of the budget goes towards servicing debt, there’s less room for funding things that matter to us – like defense, social programs, and disaster relief. It’s like having a mortgage so massive that you can’t afford to fix that leaky roof. If the national debt continues to skyrocket, it can lead to inflation and the devaluation of our currency. When the government prints more money to cover its debts, the value of the dollar can drop.

We often hear that the national debt is a burden for future generations. As this debt grows, it becomes increasingly difficult for future generations to enjoy the same standard of living we do today. Why? Because they’ll be stuck paying off the interest and principal on a debt they didn’t even create. Let’s be real here – excessive debt is a sign of fiscal irresponsibility. It’s like maxing out your credit cards without any plans to pay them off.

For many Americans, Social Security and Medicare are lifelines in retirement. However, the national debt poses a risk to the long-term sustainability of these programs. As the debt grows, it becomes increasingly challenging to ensure these programs can meet their obligations. Not so much for folks at or nearing retirement but for future generations. The U.S. has always been a land of innovation and opportunity. However, the national debt can limit our ability to invest in the future. 

Think of the national debt like taking out a loan for a big investment. Sometimes, borrowing money can help us build essential things like roads, schools, and hospitals. These investments can boost our economy and create jobs. Believe it or not, a certain level of national debt can help keep the economy stable. It provides a safe place for investors to put their money, which can keep interest rates steady and encourage economic growth. The national debt is a long-term thing. We don’t have to pay it all off right away. Just like a mortgage on a house, it gets paid gradually over time. It’s all about managing it wisely.

In the end, it’s essential to stay calm and look at both sides of the national debt. It’s not all bad news. With smart decisions and a balanced approach, we can use our debt to build a better future for all Americans. So, what can we do? Stay informed, hold our elected officials accountable, and engage in the conversation. The national debt affects all of us, and it’s up to us to ensure that our country’s financial future is on the right track.

Have Questions, Reach out to me for more information.


Hilda Hensley

Branch Manager – Mortgage Advisor 

NMLS id 280206

[email protected]

Carl Spiteri 

Branch Manager – Mortgage Advisor 

NMLS id 286890

[email protected]

The River City Team

(916) 245-0712

Benchmark Mortgage

Ark-La-Tex Financial Services, LLC NMLS id 2143 

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