Results of Run Away Federal Debt
Reduction in public services due to $400 billion in annual interest payments (and rapidly rising)
Continuing debt causes political pressure to keep interest rates low. But these low rates mean retirees earn less from their nest eggs – and, so, some of them have to work longer, putting unemployment rates higher for younger people
Running deficits eventually raises taxes, resulting in lower disposable income for Americans.
The debt causes inflation. Eventually raising taxes does not bring in higher revenue, so the government has to run the printing press to create more money. More money chasing the same amount of goods available results in inflation.
The government is on track to reduce social security and medicare benefits. It already did so in 1983 and needs to do it again to keep these expenses from running away with an even higher deficit. Higher withholding taxes for social security and medicare and delayed retirement for full benefits will certainly be the result if expenses are not controlled within these programs.
More details at: http://triblive.com/opinion/featuredcommentary/3177590-74/debt-government-pay#axzz2GpZutXKf
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