Piling on more debt can harm our economy by crowding out private investment, reducing our fiscal flexibility, increasing the risk of a sharp jump in interest rates, and lowering confidence and certainty.
Several independent organizations have analyzed the budgetary effects of the current tax reform proposals, and they are unanimous in projecting that the legislation would add substantially to our national debt.
In her final press conference as chair of the Federal Reserve, Janet Yellen said that she was “personally concerned about the U.S. debt situation” and how it may limit the government’s ability to respond to future recessions.
