The national debt is growing rapidly, and this trend could create serious challenges for future economic growth, job opportunities and wages, the Peter G. Peterson Foundation reports.
As debt increases, the cost of paying interest on that debt takes up more government resources and can limit investments in areas that support economic growth.
Rising debt can also discourage private investment in businesses, which may slow productivity and reduce the number of jobs available over time. Projections show that millions of jobs could be lost in the coming decades compared with a scenario where the debt is brought under control.
A growing national debt can also put downward pressure on wages. When private investment declines, businesses may have fewer opportunities to expand, improve productivity or increase worker compensation. Over the long term, slower economic growth could lead to weaker income growth and lower take-home pay for workers.
Young Americans are likely to feel these effects more strongly because they are often the most vulnerable during periods of economic uncertainty. With less work experience and fewer established skills, young workers may face greater competition for fewer job openings.
Higher unemployment and slower wage growth early in their careers can make it more difficult to build savings, purchase homes, pay off student loans and prepare for retirement.
The Peter G. Peterson Foundation has the full story.
