Part 5/10:
Increased Military Spending: With significant investments recorded during the Iraq and Afghanistan Wars, a combined $35 trillion was added post-1981 alone.
Economic Stimulus Packages: Recession recovery efforts by Presidents Clinton, Obama, Trump, and Biden have collectively added trillions to the national debt.
Rising Interest Rates: In a bid to combat inflation post-COVID, the Federal Reserve raised interest rates, increasing debt service payments that divert funds away from essential services.
Tax Revenue Decline: As expenditures rise, tax revenues do not keep pace, necessitating more borrowing.
Potential Outcomes
In evaluating possibilities, we must consider both positive and negative outcomes stemming from the crisis: