Although the debt ceiling debates, like the one currently taking place in Washington D.C., are nothing new, there is something unique about this one that makes it more of a cause for concern than the ones that came before.
That something is the escalating cost of financing the U.S. government’s outstanding debt. Economist Gerald P. Dwyer explains:
Consumers and businesses aren’t the only ones feeling the pain of higher borrowing costs because of Federal Reserve rate hikes. Uncle Sam is, too.
The U.S. government spent a record US$232 billion in interest payments on its debt in the first quarter of 2023, over 50% more than
