Latest / The National Debt Podcast with Fexingo: Treasury, Borrowing, and Long-Term Fiscal Outlook
How Fiscal Drag Quietly Slows Economic Growth
With federal debt nearing thirty-nine trillion dollars and the deficit widening to nearly two trillion in the latest quarter, we examine a less-discussed macroeconomic phenomenon: fiscal drag. Lucas and Luna break down how rising interest payments on Treasury securities act as a hidden tax on growth, pulling capital away from private investment and innovation. We look at the current ten-year Treasury yield hovering near five percent and what that cost of borrowing means for long-term GDP expansion. This isn't about political theater or debt ceiling brinkmanship; it is about the…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.