Experts say looming debt could lead to a financial crisis
The federal debt held by the public totals more than $13 trillion, or about $107,000 per household in the United States, according to a report released this month by the Cato Institute.
The report, titled “Washington’s Largest Monument: Government Debt,” suggests that growing debt, which has doubled over the past seven years, poses a burden on future taxpayers and could lead to a financial crisis.
According to Cato, financing government debt through tax collection creates distortions since much of federal spending goes to subsidy and benefit programs, which reduce work incentives and savings.
One economist says that “it costs taxpayers $3 to provide a benefit worth $1 to recipients.”
Full article: Federal Debt Held by the Public Totals $107,000 Per Household (Washington Free Beacon)