Connect with us

Hi, what are you looking for?

News

Former White House Economist Warns Gen Z of Heavy Consequences from U.S. Debt Blunder by Previous Generations

Gen Z will pay dearly for this U.S. blunder on the massive debt that boomers, Gen X, and millennials are dumping on them, former White House economist warns

U.S. debt is reaching unprecedented levels, and a former White House economist, Todd Buchholz, has cautioned that the Treasury Department missed an opportunity to alleviate the burden on Generation Z. Buchholz emphasized that Gen Z, already burdened with concerns such as high housing costs and the impact of social media on mental health, now faces the weight of irresponsible debt accumulation from previous generations.

Over the years, U.S. debt has steadily climbed, surpassing significant historical markers. Notably, gross federal debt relative to GDP has exceeded levels seen in the aftermath of World War II. The cost of servicing this debt is projected to surpass defense spending this year, raising alarms from figures like Fed Chairman Jerome Powell and various CEOs in the financial sector.

Buchholz highlighted the disproportionate impact on Generation Z, noting that half of young adults believe they may never afford a home while being tasked with footing the bill for previous generations’ fiscal recklessness.

Todd Buchholz

Todd Buchholz (Credits: Speaking)

He argued that the Treasury Department could have capitalized on historically low interest rates post-financial crisis by issuing longer-term bonds, locking in lower borrowing costs. However, the department largely stuck to short-term borrowing, resulting in higher costs as debt matures and is rolled over.

Despite missed opportunities, Buchholz suggested that future chances to secure cheaper debt may arise, urging the Treasury Department to consider issuing long-term bonds when inflation-adjusted yields drop below historical averages. However, this strategy alone won’t address the underlying issue of massive federal deficits driving the surge in U.S. debt.

Buchholz pointed to excessive government spending as the root of the budget problem, echoing President Ronald Reagan’s analogy of government resembling a baby with a voracious appetite and little accountability. The article concludes with a recommendation to subscribe to the CFO Daily newsletter for ongoing insights into corporate finance trends and developments.

Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

We’re dedicated to providing you the most authenticated news. We’re working to turn our passion for the political industry into a booming online news portal.

You May Also Like

News

Spoilers! The demon Akaza from Kimetsu no Yaiba dies in the eleventh arc of the manga and the one responsible for his death is...

Entertainment

Actress Emma D’Arcy is from the British rebellion. She has only appeared in a small number of movies and TV shows. It might be...

Entertainment

Jennifer Coolidge Is Pregnant: Jennifer Coolidge Audrey Coolidge is a comedian and actress from the United States. Many of her followers are wondering if...

News

Mark Zuckerberg, in a letter to Jim Jordan, the chair of the House Judiciary Committee, disclosed that he had to remove millions of posts...