James Pethokoukis: “But just because it doesn’t automatically follow from our ballooning deficits that there’ll be a debt crisis — as happened in Greece with the global financial crisis of 2008 — that doesn’t mean big debt isn’t a big problem.”
“Higher debt levels can be like sand in the gears of the American economic machine, causing it to operate a bit less efficiently and less powerfully year after year. After a massive economic downturn thanks to Covid-19, we can afford that slowdown even less. Not only do we need economic growth to help pay down that debt, but some economists worry the post-pandemic world will be one of less risk-taking and less innovation.
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