Billionaire investor Ray Dalio warned about America’s growing national debt and said the country must act before it suffers the financial equivalent of a “heart attack,” reported Business Insider.
Is debt like a plaque?
According to the report, the Bridgewater Associates founder Dalio compared the US debt to “plaque” accumulating in the financial system. He warned that the mounting debt “poses a problem for governments as interest payments eat up more and more of their budgets,” as quoted by Business Insider.
As per Treasury’s data, the US government spent $6.75 trillion last fiscal year. While it only brought in $4.92 trillion in revenue, leaving a deficit of $1.8 trillion, reported Business Insider. Over the past two decades, the national debt has more than tripled to around $36.2 trillion, the report added.
Risks of inaction
According to Dalio, unless the US doesn’t cut its fiscal deficit from 6% of GDP to 3% in the next four years…
