Why is this unsustainable?

·       Interest Burden

As debt grows, interest payments consume a larger share of federal revenue.  At current rates, annual interest could exceed $1.5 trillion within a few years, crowding out spending on defense, infrastructure, and social programs.

·       Investor Confidence

Heavy borrowing risks eroding confidence in U.S. Treasury securities.  If investors demand higher yields, borrowing costs rise further, creating a vicious cycle.

·       Inflationary Pressure

Persistent deficit spending injects liquidity into the economy, which can fuel inflation—especially if productivity doesn’t keep pace.

·       Intergenerational Transfer

Future taxpayers are set to inherit obligations they didn’t create, reducing fiscal flexibility for emergencies or growth initiatives.  This is not just a problem for the present, but a burden that we are passing on to future generations.  It’s a responsibility we cannot afford to shirk.  

Moral Hazard in Government Spending

While households are urged to reduce personal debt as a path to financial freedom, the federal government behaves in stark contrast—accelerating deficit spending and pushing the national debt beyond $40 trillion.  This creates a classic moral hazard: policymakers face no immediate consequences for fiscal irresponsibility, yet the burden ultimately falls on taxpayers and future generations.  By normalizing perpetual borrowing, the government signals that debt is inconsequential, eroding market discipline and fostering systemic risk.  Such behavior undermines confidence in U.S. creditworthiness and sets the stage for inflationary pressures, higher interest costs, and diminished economic resilience.