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There is upper limit. Cost of servicing debt cannot exceed tax revenue. But that's in theory. The U.S. spent $450 billion in interest payment to its debt, on
by pcurve 8y ago
There is upper limit. Cost of servicing debt cannot exceed tax revenue. But that's in theory.
The U.S. spent $450 billion in interest payment to its debt, on tax revenue of about $2.5 trillion That's 18% of revenue.
Can it go to 30%? Sure, but there will be cuts made to services.
Japan gets panned for overspending, but they're in line with what the U.S. spends in debt servicing cost in relation to revenue.
https://data.worldbank.org/indicator/GC.XPN.INTP.RV.ZS?locations=JP-US&view=chart https://data.worldbank.org/indicator/GC.XPN.INTP.RV.ZS?locat...