According to The Wall Street Journal, America is expected to spend $870 billion, or 3.1 percent of gross domestic product, this year on interest payments on the federal debt.
Within three years, if interest rates remain high, payments on the debt could become the federal government's second-largest expenditure, behind Social Security.
A 2019 Congressional Budget Office study found that every 10 percent increase in the debt-to-G.D.P. ratio results in an increase in interest rates of two-tenths to three-tenths of a percentage point.
One has to worry about the long-term nightmare possibility of a debt spiral, in which you have to borrow and borrow to service the debt while the act of borrowing itself makes paying off the debt more unaffordable.
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