So, how does an increasing national debt affect you?
Michael A. Peterson, chairman and chief executive officer of the nonpartisan fiscal watchdog Peter G. Peterson Foundation, said one of the most concerning effects will be the amount of interest taxpayers must pay as the debt grows.
Just as a credit card incurs interest charges when it’s not paid off, he said, so does the federal government.
According to the CBO, the federal government — aka U.S. taxpayers — will spend $455 billion on interest next year. By 2029, that figure is projected to rise to $921 billion.
Beginning next year, he said, the federal government will spend more on interest than it will on programs affecting children.
By 2025, he said, taxpayers will pay more on interest than they do on national defense.
“Our budget will be spending more on our past than we do on our future,” Peterson said. “That’s a stark reminder of what we’re leaving our children here.”