When we owe money, we often sacrifice other spending until our debts are paid.
Government often does the opposite because it can… especially with the $17.3 trillion debt that grows every day. To erase such a large debt, you’d have to raise taxes a lot on everyone to even make a dent.
Then, there’s interest…
As the government dives deeper into debt, interest rates on everything from mortgages, car loans, and credit cards will go up costing everyone who has loans more money. Think about how this will impact your own budget. It also makes it harder for employers to borrow money and expand. That means fewer job openings and even job losses.
Finally, as more of the federal budget goes to pay interest, less money is available for government services like education, roads, security, and medical services for the elderly… things that affect all of us.