America's reckless borrowing is a danger to its economy and the world

I amf Discretion is A virtue then is an exercise in America's budget vice. The federal government has spent $2trn or 7.2% over the past 12 months GDP, after removing temporary factors, is more than raising taxes. Usually such broad deficits are the result of recessions and accompanying stimulus. Today's lavish borrowing comes despite America's longest sub-4% unemployment in half a century. The deficit is not less than 3% GDPJust an old measure of good financial management from 2015 and next year Uncle Sam's net debts will exceed 100%. GDP, an increase of two-fifths in a decade. While near-zero interest rates once made large loans affordable, today rates are high and the government is spending more on debt service than on national security.

How did this come about? The costs of wars, the global financial crisis and pandemic, unfunded tax cuts and stimulus programs have all piled up. Republicans and Democrats pay lip service to fiscal responsibility. But caution is thrown to the wind when each side in office commits to additional spending or tax cuts. The biggest economic decision facing the next president is how generous to renew Donald Trump's 2017 tax cuts, which could worsen America's dire fiscal path.

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