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…
