CNN reports the monstrosity of a bill that our interest alone will be handing the U.S. in the coming future.
Uncle Sam will shell out more than $5 trillion in interest payments over the next decade, according to the latest projections from the Congressional Budget Office. That’s more than half of the projected $11 trillion increase in debt held by the public during that period.
Over the decade, more than 14% of all revenue the government is projected to collect will be sucked up by interest payments. That’s a lot of money that can’t be used on the country’s other priorities. Indeed, between 2013 and 2022, estimated interest costs will be:
- higher than Medicaid spending;
- equal to half of Social Security spending;
- close to what is spent on all of defense.
And here’s the thing—the estimated interest costs assume a fairly steady and moderate increase in rates over the decade.
Interest rates may be at a record low at the moment, but the backlash is indubitably high. Everything at the end of the day has its price.
Chart via money.cnn.com