The national debt has been getting more press lately as America prepares for the November election. It’s of particular concern after it swelled during the COVID-19 pandemic like an expandable water toy dropped in a bathtub. The national debt rose from $26.14 trillion in 2018 to $33.17 trillion in 2023.
It’s become so concerning that the three major credit rating agencies downgraded the U.S. federal government’s long-term debt; the country now has a worse credit rating than Microsoft Corp. (ticker: MSFT) and Johnson & Johnson (JNJ), despite the fact that neither company can literally print its own money.
The U.S. national debt is larger than its gross domestic product, and it’s only expected to grow. Here’s how investors can address concerns raised by rising debt levels:
- Why investors should care about the national debt.
- Why is the national debt so large?
- The national debt’s impact on investments.
- Can the U.S. pay back its debt?
- Maintaining balance in the short term.
- Mitigating long-term risks.
Why Investors Should Care About the National Debt
The national debt may seem as far removed from your investments as your parents’ debt is from your bank account. But…
