{"id":27016,"date":"2024-05-09T04:52:02","date_gmt":"2024-05-09T09:52:02","guid":{"rendered":"https:\/\/ustower.net\/?p=27016"},"modified":"2024-05-09T04:52:09","modified_gmt":"2024-05-09T09:52:09","slug":"skyrocketing-national-debt-could-spell-disaster-for-younger-generations-of-americans","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=27016","title":{"rendered":"Skyrocketing National Debt Could Spell Disaster for Younger Generations of Americans"},"content":{"rendered":"\n

As a younger generation enters their \u201chome buying age\u201d they are facing mortgage rates that have been pushed up to a 20-year high by the US Federal Reserve. For 2024, 30-year mortgage rates in the US are expected to fall between 6.4% and 6.5%, compared to 2.96% in 2021.<\/strong><\/strong><\/p>\n\n\n\n

The US is facing a mounting debt of more than $34 trillion, The Hill wrote in an article<\/u><\/a> published on Wednesday. And polling has found that Americans are growing more concerned over the national debt, and what that may mean for their future. Republican lawmakers, for instance, want to make cuts to key social programs like Social Security and Medicare, as opposed to increasing taxes.<\/p>\n\n\n\n

A February <\/strong>report<\/strong><\/a> by the Congressional Budget Office (CBO) found that the debt held by the public will rise significantly over the next decade; climbing from 99% of GDP in 2024 to 116% in 2034. The report also found that the estimated net interest costs in 2025 would be \u201cgreater in relation to GDP than at any point since at least 1940, the first year for which the Office of Management and Budget reports such data.\u201d<\/strong><\/p>\n\n\n\n

Desmond Lachman, a South African-born economist and finance author, explained that selling bonds is one move that increases interest rates, though the Federal Reserve has also increased interest rates to fight inflation, too.<\/p>\n\n\n\n

\u201cIf the government is borrowing money, you\u2019re needing to raise a lot of money, so it means I\u2019ve got to sell a lot of bonds, that forces interest rates higher,\u201d said Lachman. \u201cIf interest rates in general are higher, your mortgage rates are higher.”<\/p>\n\n\n\n

\u201cThat\u2019s important for young people, because they\u2019re not in the housing market,\u201d he added. \u201cThey\u2019re not sitting on a house that has got a paid off mortgage fate, they are the ones who are going to have to go out and borrow money now at a very high, very high interest rate.\u201d<\/p>\n\n\n\n

Wednesday\u2019s article also found that the higher national debt will have an impact on both the US job market as well as the housing market. As is the case with most economic disasters, the two industries will uniformly affect one-another. One economist explained that higher interest rates discourage businesses from making investments in \u201cnew capital\u201d including building new homes.<\/strong><\/p>\n\n\n\n

Economists also told The Hill that future generations of Americans could see their taxes increase as a way to compensate the surging national debt.<\/p>\n\n\n\n

\u201cIf the federal government doesn\u2019t get its act together and start charging enough in taxes to cover what it wants to spend on programs, then the debt will go up,\u201d said Joshua Gotbaum, a guest scholar in the Economic Studies program.<\/p>\n\n\n\n

\u201cIf the debt goes up and the interest rate goes up, then the taxpayers at that time are going to be paying the bill,\u201d he said. \u201cYour parents avoided those bills, because the Congress instead of raising taxes to cover them, borrowed the money.\u201d<\/p>\n\n\n\n

A\u00a0report<\/u><\/a>\u00a0from March 1 found that the US national debt – which is the amount the federal government borrows to cover its expenses – has been growing at an expedited rate of about $1 trillion every 100 days. In June of last year the debt was at $32 trillion before hitting $33 trillion in September.<\/p>\n\n\n\n

sputnikglobe<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As a younger generation enters their \u201chome buying age\u201d they are facing mortgage rates that have been pushed up to a 20-year high by the US Federal Reserve. For 2024, 30-year mortgage rates in the US are expected to fall between 6.4% and 6.5%, compared to 2.96% in 2021. The US is facing a mounting […]<\/p>\n","protected":false},"author":5,"featured_media":27017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[28298,1235,2261,3672,28299],"class_list":["post-27016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cbo","tag-debt","tag-disaster","tag-federal-reserve","tag-younger-generation"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/27016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27016"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/27016\/revisions"}],"predecessor-version":[{"id":27018,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/27016\/revisions\/27018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/27017"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}