[The Debt Trap] examines how America reached this precarious juncture, tracing the roots of its debt crisis from the Reagan-era tax cuts and post-9/11 wars to the 2008 financial bailouts and COVID-19 stimulus packages. Both political parties share the blame: Republicans for championing deficit-busting tax breaks, Democrats for expanding entitlements without sustainable funding. The result? A debt-to-GDP ratio exceeding 120%, interest payments now outpacing defence spending, and a ticking time bomb for future generations. Yet solutions remain elusive in today's polarized climate. While economists warn of inflation spikes, currency devaluation, or even a catastrophic debt spiral, lawmakers prioritize short-term wins over long-term stability.
The book explores the global stakes—70% of U.S. debt is held domestically, but foreign creditors like China and Japan could weaponize their holdings, destabilizing markets and undermining dollar hegemony. Meanwhile, critical investments in infrastructure, education, and climate action stall as debt service consumes federal budgets. Is there a way out?
[The Debt Trap] confronts uncomfortable truths: entitlement reform, tax hikes, and spending cuts are all politically toxic. Drawing parallels to historical debt crises, from Weimar Germany to modern Greece, it asks whether America can avoid becoming a cautionary tale. The conclusion is stark: without bold action, the U.S.'s 'full faith and credit' may soon face its greatest test.
Ouvrage Anglais
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