Bair, A former U.S. Treasury official, warns that unchecked deficit spending has driven federal debt to over $35 trillion, nearing post-WWII levels. While past crises justified temporary deficits, today’s political leadership relies on debt for tax cuts and spending, ignoring long-term risks.
With the U.S. dollar’s global dominance weakening, experts predict that continued borrowing will erode investor confidence, potentially leading to a debt-driven economic crisis. Bair urges immediate action to stabilize finances before another downturn forces severe cuts or tax hikes.
U.S. Debt Could Drive the Next Financial Crisis
Oct 30, 2024
Article from Barron’s by Sheila Bair
Article Synopsis
