How do Feldstein's ideas relate to national debt?
My research on budget deficits and their impact on national debt is highly relevant today. I argued that persistent government deficits, financed by borrowing, can lead to higher interest rates. This increased cost of borrowing makes it more expensive for businesses to invest and for individuals to finance homes or other major purchases. Furthermore, a large national debt can reduce flexibility in future fiscal policy, as a greater portion of government revenue must be allocated to interest payments, potentially crowding out essential public services or future tax relief.
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