The US debt is very bitter now similar to the student loan crisis

in New York Times For example On Wednesday, he admitted that one day he was a long pigeon when it came to a budget deficit and previously argued that financial austerity often harms more than benefit.

“I am no longer. I, like many other long doves, have joined the hawks, because the math of our nation’s budget has become more dangerous,” Bernstein wrote.

In particular, he referred to mathematics on economic growth against the debt interest. Bernstein explained that governments can maintain a budget deficit if GDP expands faster than the interest rate on their debts, citing research from Economists Olivier Blancard.

This is where the likeness of students ’debts comes. College graduates can keep up with monthly payments as long as they are not borrowed too much and their income rises faster than their loans.

“On the contrary, if they borrow to the maximum – and if the debts of student loans start growing faster than their income – they can face a problem,” said Bernstein. “This is where our country is now.”

It is a fateful warning, given this The rates of delinquency increased Among the borrowers, student loans, which led to A wage seized Credit levels decreased.

This is after the number of Americans who have debts of federal students’ loans more than twice from 21 million to 45 million between 2000 and 2020, according to L. Brookings Institute. Meanwhile, the total amount deserved more than a quadruple amount from 387 billion dollars to $ 1.8 trillion during that time, increasing faster than any other form of home debt.

When it comes to funding the federal government, US debt costs related to income were more benign. Since the early first decade of the twentieth century, the amended return on inflation on treasury bonds for 10 years has been less than 10 years later for economic growth.

But that has recently changed, as the two are now a little higher than 2 %, partly due to government spending during the epidemic and high inflation – forcing the federal reserve to raise interest rates strongly, leading to a rise in the return.

“This is a possible change in the sustainability game,” said Bernstein.

It was not mentioned that the Biden administration added trillion to debts with the wide spending that caused inflation.

Instead, he referred to President Donald Trump’s economic policies, his commercial war and the tax spending bill he signed last week.

The high tariff prices will work on economic growth with increased inflation and interest rates. He added that the tax cuts at the same time will increase debts and are likely to raise the interest costs to serve them.

To help avoid the shock of debt that forces the government to reduce spending or significantly raise taxes, Bernstein suggested that Congress is sentenced to “breakfast moments” and binding financial responses.

The United States is already paid more than its debts, which spends it on medical and defense. These interest payments will reach a trillion dollars next year, and they are only social security as the largest government expense, According to To the responsible federal budget committee, the thought reservoir.

Meanwhile, Trump’s tax cuts and spending trillions will add to the deficit in the coming years, with the total. The debt ratio to gross domestic product Beyond the post -words record in the second war.

“But this path is still not sustainable: the basic deficit is much greater than the usual in a strong economy, the debt ratio to GDP is close to the post -war rise, and real interest rates have been much higher than interest expenses and interest health as a share of gross domestic product on more severe paths than the last session.”