Americans Are Already Paying Dearly for the National Debt The U.S. government’s massive national debt has already begun to exact a steep toll on American households, with rising interest rates driving up costs for mortgages, auto loans, small-business financing, and credit cards. The federal deficit, which has ballooned over the past decade, has pushed Treasury yields higher, squeezing families and businesses that rely on borrowing. According to the Budget Lab, a policy research center at Yale, congressional spending decisions since 2015 have raised long-term interest rates by nearly a full percentage point. This increase has translated into significant financial burdens for average Americans, with a 30-year mortgage at the median home price in 2024 now costing an additional $2,500 annually—over $76,000 over the loan’s lifetime. The impact extends beyond homeowners. The Budget Lab estimates that the fiscal policies of the past decade have raised borrowing costs for auto loans by about $120 per year and for small-business loans by roughly $770 annually. Credit-card rates, already near record highs, have also been exacerbated by the government’s reliance on deficit spending. These trends reflect a broader shift in how federal borrowing affects the private sector, as the demand for funds from the U.S. government drives up interest rates for all borrowers. The consequences of this debt-driven inflation are not hypothetical—they are already reshaping everyday life. For example, the war in Iran, which the Pentagon estimates cost $29 billion last month, is projected to push interest rates up by 0.002 percentage points. Meanwhile, the One Big Beautiful Bill Act, a major piece of legislation passed in recent years, is expected to raise the federal deficit by $2.#pentagon #one_big_beautiful_bill_act #budget_lab #tax_cuts_and_jobs_act #pandemic_stimulus_measures
