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: it depends! Assuming you live in the US, it’s not a problem for the foreseeable future. We have a strong tax base that means that even though we use debt financing a lot, we don’t default on that debt. The way it affects you depends on what you’re trying to do. Say you’re concerned about your retirement account. Well the short term federal interest rate will hurt stocks and bond in the short term but over the long term, it will even out to a positive (you can take a 10% hit today because 20 years from now you’ll have had multiple years of gains to compensate). If you’re a capital firm, any drastic change in national debt or financial policy will drastically change how to invest on a day to day basis.
There’s a million more ways our national debt could effect you but the most common is long term growth for retirement and debt financed purchases (house, car, new business, etc).
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