Editorial Board
Restoring Fiscal Control Can’t Wait Much Longer
The US’s government debt is dangerously high and set to keep rising. What will it take for Washington to pay attention?
Who’s counting?
Photographer: Jemal Countess/Getty Images
Since the start of the new year, the bond market has been urging Congress to come to terms with America’s spiraling budget problems. Soon it might be demanding immediate action.
Long-term yields have hovered around 5%. If they stay there, the government’s inflation-adjusted cost of borrowing will likely exceed the economy’s rate of growth — meaning the debt ratio will rise even faster than currently projected and that bigger spending cuts or tax increases will be needed to rein it in. This is what “unsustainable” fiscal policy looks like.