This week, a big question came up at a hearing for Janet Yellen to become US Treasury Secretary. Is there too much debt?
Over the last four years, US government debt held by the public has increased by $ 7 trillion to $ 21.6 trillion. Presidential election Joe Biden is working on a spending program that could add trillions of dollars over the next year. With 100.1% of GDP, debt is already above the economy’s annual output, and the United States is affiliated with economies such as Greece, Italy and Japan.
When Yellen chaired the White House Economic Advisory Board under the Clinton administration, she was one of the people who promoted a balanced budget. Today, she has cautiously joined a new consensus focused on the left side that shorter borrowings are needed to help the economy. Even if you don’t have a concrete plan to repay it. At the heart of the view is the expectation that interest rates will remain low for the foreseeable future, making borrowing more affordable.
The Biden administration will fight progressives who want more spending and conservatives who say the government is seducing fate by adding to its inflated balance sheet. Yellen’s challenge, if confirmed, is to bring Democrats together and persuade some Republicans.
Mr. Biden’s chief economic adviser, Mr. Yellen, will testify in front of the Senate Finance Committee on Tuesday, which will vote for her nomination. She chaired the White House Economic Advisory Board in the 1990s and the Federal Reserve in the 2010s. By confirming that Yellen is Secretary of the Treasury, Yellen will be the first to achieve three of these economic leadership roles.
Debt Problems Faced by Janet Yellen: How Much Is It Too Much?
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