What are the real-world economic consquences of a huge national deficit?

Question

I’m a middle aged dude with a family, own a house, have four kids, investments, all the adulting things.

However, I’m still not sure how a multi-trillion dollar national defecit seeps down to affect my day-to-day life

In: 492

Answer 1

Remember in 2019 when Mcdonalds still has a dollar menu, or you could find a slice of pizza for under $2? More national debt results in more dollars in circulation chasing the same amount of goods. When your grocery bill doubles for the same amount of food, and your salary increases only 5%, you have less buying power. Bigger national deficits eventually translate into inflation. Interest rates also increase as a response to inflation. If you are looking to finance a new property or have a friend looking to buy a house, you might be aware that mortgage rates have just hit 8% from 3% in 2019.