The Federal Debt Will Increase
In case you didn’t know, the U.S. debt went higher than $20 trillion last year and stayed stable even after sequestration kicked in. However, that required a mandatory 10% federal budget cut through 2021. President Trump says that he is going to reduce that debt, but his policies will also increase by $5.3 trillion.
How it affects you: Reducing a country’s debt is always a controversial topic. In order to balance the budget, there are spending cuts needed.. big ones. One of them, for examples, would be military, which takes up a lot of money constantly. Right now, the U.S. debt-to-GDP ratio is 102%, which is way above the 77% benchmark level recommended by the International Monetary Fund. In order to get back on track, the country needs drastic measures – regardless if they are tax hikes, spending cuts or even both.
