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

What is important is what you did/do with that deficit and debt. It’s one thing to deficit spend for say much needed infrastructure spending when interest rate was 0 that improvement will pay off with future productivity increases that would cover 0% or low interest rates. But if you deficit spend on unproductive things like tax cut for the rich for them to squirrel away at Cayman Islands, then eventually chicken will come home to roost. Though for country like US who has control over its own currency and debt issued with its own currency, that could take long time.