Former Federal Reserve head Janet Yellen said last week that she’s worried about the Federal deficit. She says current government spending is unsustainable. And, Yellen said, she’d raise taxes if she had a “magic wand.”
Well, I’m also worried. And Yellen is absolutely right.
But let’s parcel out the blame. The US debt level rose by $8.59 trillion from 2010 to 2017, according to HowMuch.net. That was on President Obama’s watch. And while Yellen wasn’t in charge of federal spending, she deserves some of the blame for the economy during half of those years.
US debt is now nearly $21.7 trillion, and it’s growing fast. It will grow even faster when interest rates rise and the government has to spend more to borrow.