Question

Will the current high level of government debt pose a serious problem for the U.S. economy in the future? Why or why not?

Answer 1

Yes, it really does because this will result in limited spending power of the government in future as it woul restrict its spending in future to not borrow beyong already higher debt level. This is negative for future as lower government spending will be negative for the GDP growth. The government will tend to take more taxes from future generations to meet the debt repayments which will also reduce cosumer spending in future. These both are negative for economy in future.