Election years often bring a wave of promises — tax cuts, new programs, and expanded benefits. But few voters ask the critical question: How will it be paid for?
Debt Dynamics
The national debt grows when government spending exceeds revenue. Higher debt can increase borrowing costs for the government and, eventually, for consumers.
Impact on Interest Rates
As the debt grows, so does the need for investors to buy government bonds. To attract buyers, interest rates may rise — which can spill over into mortgages, credit cards, and business loans.
Voter Awareness
Understanding how proposals affect the debt can help you evaluate their long-term sustainability, not just their short-term appeal.
Bottom Line
Promises sound good in campaign speeches, but they can have lasting consequences for taxpayers and the broader economy.
