“At its current trajectory, the rising national debt\u2014and the increasing burden of making interest payments on it\u2014will reduce Americans’ future income growth by 12 percent over the next 30 years, the CBO projects in a new report. That means the average person will earn about $5,000 less annually than they would in a scenario where the debt was not growing.<\/p>\n\n\n\n
“This is the result of crowding out<\/a>, whereby a higher national debt reduces private investment and slows income growth,” explain<\/a> the number crunchers at the Committee for a Responsible Federal Budget (CRFB), a nonprofit that advocates for reducing the federal deficit. “With additional debt, income growth would slow further.””<\/p>\n\n\n\n