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“Debt, Equity, and Differences among Financial Bubbles.” Equitable Growth, 26 Apr. 2018, https://equitablegrowth.org/debt-equity-differences-among-financial-bubbles/#:~:text=Bubbles%20in%20equity%20assets%20that%20aren%E2%80%99t%20financed%20by,recessions%20more%20severe%20and%20subsequent%20economic%20recoveries%20slower. 

Direct Quote: The three economists find a hierarchy for the effects of bubbles. Bubbles in equity assets that aren’t financed by credit aren’t particularly virulent. In fact, Jorda, Schularcik, and Taylor find that these bubbles don’t make recessions any worse. Or at least, there is no statistical difference. Debt-fueled equity bubbles are more damaging, making recessions more severe and subsequent economic recoveries slower.

Summary/My Interpretation: In any economy, there exists asset bubbles that are fueled by underlying causes. In a recent analysis, three economists compared the types of bubbles that tend to exist and found debt backed bubbles to be the most harmful. Specifically, when a debt bubble pops, it indicates that the party is unable to pay back the debt they have amassed. This is problematic as low levels of disposable income can perpetuate recessions due to the fact that there is no way to stimulate demand. 

How I Plan To Use This In My Project: As a whole, this article does a good job at distinguishing between credit and debt backed bubbles. By specifically making this distinction, the author demonstrates how the US is in a unique position in which a recession would prove to be especially problematic. Overall, I want to use this in my project to invoke a sense of urgency among my readers and encourage them to become more invested in the federal deficit. 

DeSilver, Drew. “5 Facts about the U.S. National Debt.” Pew Research Center, Pew Research Center, 14 Feb. 2023, https://www.pewresearch.org/fact-tank/2023/02/14/facts-about-the-us-national-debt/#:~:text=In%20a%20new%20Pew%20Research%20Center%20survey%20about,this%20year%2C%20up%20from%2045%25%20a%20year%20ago. 

Direct Quote: Public concern about federal spending is on the rise. In a new Pew Research Center survey about the public’s policy priorities, 57% of Americans cited reducing the budget deficit as a top priority for the president and Congress to address this year, up from 45% a year ago. Concern has risen among members of both parties, although Republicans and Republican-leaning independents are still far more likely than Democrats and Democratic leaners (71% vs. 44%) to view cutting the deficit as a leading priority.

Summary/My Interpretation: When looking at public opinion, it is evident that an overwhelming majority supports some sort of government action to reel back in the deficit. In fact, this figure has continued to rise alongside the deficit. 

How I Plan to Use This in My Project: Overall, I plan to use the poll as a means to introduce the call to action for solving the debt. At the point where over 50% of people support reducing the deficit, it is evident that this policy should be at the forefront of American politics. Additionally, by mentioning the existing support for debt reduction, those reading my paper become more likely to be in favor of the policy. 

“How Do Federal Student Loans Affect the National Debt?” Peter G. Peterson Foundation, 17 May 2022, https://www.pgpf.org/blog/2022/06/how-do-federal-student-loans-affect-the-national-debt. 

Direct Quote: Did you know that the federal government is the direct lender for nearly all student loans in the U.S., lending trillions of dollars to millions of borrowers to help increase access to higher education? Because the amount of funding for new student loans exceeds the amount of repayments from existing loans, the government must borrow the difference, which adds to the national debt.

Summary/My Interpretation: One of the most important federal programs is the low interest loans that the government is able to provide in order to encourage education. As the national debt continues to rise, this program gets placed in jeopardy. Specifically, since the US must take loans to cover the difference between loans paid back and loans given, it contributes to the deficit. This is problematic because if the debt continues to balloon, it may cause the government to place higher interest rates on these loans, leading to less accessible education.

How I Plan to Use This in My Project: This article introduced me to the concept of the national debt crowding out federal student loan programs. I want to continue exploring this issue as there exists a direct link between the federal debt and the accessibility of education in the US. This impact would also spill into other sectors as education is often associated with economic growth and stability. 

“Interest Costs on the National Debt Set to Reach Historic Highs in the next Decade.” Peter G. Peterson Foundation, 31 May 2022, https://www.pgpf.org/blog/2022/05/interest-costs-on-the-national-debt-set-to-reach-historic-highs-in-the-next-decade. 

Graph:

Summary/My Interpretation: When looking at the graph, it is evident that federal spending on the national debt interest is on pace to become the fastest growing program. Overall, this is worrisome as experts believe it will out pace medicare and social security by 2047, resulting in cuts to the programs. Overall, economists believe that the interest on the debt will nearly triple over the next 30 years. 

How I Plan To Use This In My Project: In my previous research I state that social security and medicare will be crowded out by the national debt. I want to continue this narrative and use the graph above as a visual demonstration of how this may happen. In general, people tend to not only understand a concept better but also have an increased sense of urgency when provided a visual descriptor.

Swagel, Phillip. “The Economic Effects of Waiting to Stabilize Federal Debt.” Congressional Budget Office, https://www.cbo.gov/publication/58055. 

Direct Quote: In the benchmark economy used in this analysis—an economy in which no stabilization policy is enacted—income tax revenues and benefit payments rise over the 2021–2051 period and peak at 10.3 percent of GDP and 14.5 percent of GDP, respectively. If stabilization began in 2026, income tax revenues would rise as high as 11.9 percent of GDP and benefit payments would fall as low as 11.1 percent of GDP by 2035.

Summary/My Interpretation: As the debt continues to rise, one potential impact that has many worried is how the figure will affect the amount of taxes people pay. Specifically, many believe that if the government doesn’t take immediate action to combat the debt, it will lead to higher taxes for all US citizens. In fact, experts believe that if action is not taken, taxes will outpace the benefits they provide. 

How I Plan To Use This In My Project: In my previous research, I proved that a ballooning debt holds the potential to raise taxes among US citizens. I hope to use the article above as a way to quantify what this figure will look like. By specifically providing a quantification for how much taxes increase, it will cause people to become more invested in the issue as tax raises often lead to a large public response.