June 26, 2024
By Atul Bhatia, CFA
- U.S. government debt has been rising rapidly since the global financial crisis, but broader measures of borrowing across the economy have remained relatively stable and on par with other developed economies.
- U.S. fiscal policy is likely already unsustainable, with politically sensitive programs costing more than current taxes generate.
- Higher inflation not default or foreign coercion is the likely trigger for the U.S. to put its budgetary house in order.
The U.S. debt has always been a divisive matter. Not only is there disagreement on its causes and fixes, but no one can seem to agree if, or when, the federal debt becomes a concern.
Both sides of the argument have a problem, in our view. Folks s…
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