Interest

The idea of deficit spending has become so entrenched in our government that conservatives who want to cut spending are referred to as right wing extremist. Some years down the road when the interest on the debt begins to weaken economic growth all those who pushed for more spending will deny they were part of the group that didn't think the debt would ever be a problem. Twenty years ago the interest on the debt was $290 billion and this year it is $980 billion. This is 11% of the budget compared to 13% for defense and 13% for Medicaid. During this time the Fed Fund interest rate has increased from 1.5% to 5.5%. As the country continues reshoring inflation will rise and the hope is that increased productivity will outpace inflation. Is counting on hope enough?