“You must gain control over your money or the lack of it will forever control you.”
~ Dave Ramsey
Washington’s heavy debt load isn’t just a problem for future generations. As interest costs balloon and borrowing needs grow, the national debt stands to make everything from mortgages to car loans more expensive. (Source: Shutterstock)
Note from Addison: Judging from reader mail regarding the midterm elections and pending disastrous results of Democrats gaining control over Congress and the levers of government spending again couldn’t be more alarming. Trouble is, and this is just a feature of democracy, economics rarely plays a role in voter decisions. What seems to matter more than anything else is voters asking: “what’s in it for me?”
Your response to the data we published yesterday was alarming. Recent surveys we’ve conducted and published are even more so. There are no candidates promising to tackle government spending.
Here are a couple of satirical political cartoons that sum up the level of discourse regarding serious issues facing individual investors, who also happen to be voters this coming Tuesday:
How absurd is it that socialists have gained an audience at the exact same moment in time that the national debt has crossed $40 trillion, 100% of US GDP?
We’ve also published some shocking statistics about what you can expect from the stock market over the next 12 months… one path sums up what will happen if Republicans retain control of the House and Senate.
The other shows what’s likely if our Grey Swan forecast plays out and Congress finds itself in the fetid grip of socialists. If you’re interested in how the stock market is going to react to the midterms, please review our findings here. You’ll also see how we’ve deployed a patented AI forecasting tool to help select trades that’ll help you make money, no matter who’s gums are flappin’ on Capitol Hill after Tuesday’s election.
Below is a summary compiled by the Peter G. Peterson Foundation of the cost structure the national debt foists on everyday Americans. The data reflects the cost to citizens when Congress is dysfunctional and cannot even balance its own checkbook. Let alone pay off the national credit card.
October 30, 2026 — The rising national debt has costly economic consequences for American families and businesses. As our national debt grows, it can drive up inflation and interest rates.
This can make everyday necessities like gas and groceries more expensive, while also leading to increased monthly costs for mortgages, car loans, and small business loans. Higher interest rates also crowd out private investment, which means fewer jobs, lower wages and reduced economic growth.
The $40 trillion and rising national debt is becoming too big to ignore, squeezing Americans from their wallet to their wages. Addressing America’s debt is a key part of improving the cost of living, enhancing affordability, strengthening our economy and building a stronger, more sustainable future for the country.
As America looks to a consequential midterm election in November, the link between affordability and the national debt should be a key issue. The Peter G. Peterson Foundation is bringing together the views of fiscal and economic policy experts as well as everyday Americans to highlight the connection between our rising national debt and the widespread cost of living concerns across the country.
What Experts Say about the National Debt-Affordability Connection
The consequences of this debt are not off in the future, but already here. The government’s deficits have saddled many American families with higher costs, largely from rising interest rates.
- Budget Lab at Yale
The warning lights in the federal budget are flashing, and the middle class will pay the price if Washington stays asleep at the wheel. High and rising debt matters for the real economy.
- Third Way
High public debt contributes to higher interest rates […] We feel it when buying a new family car or home. Businesses can feel it too, which can lead to less expansion or hiring. The result is another drag on the wage growth that we need to keep pace with inflation.
- Mercatus Center
Cutting deficits and controlling the growth of debt is… a route to lower interest rates, faster growth in the standard of living, and the ability to much more easily afford a lifestyle better than what will transpire if the United States continues on its current path.
- American Action Forum
The consequences of rising federal debt are real. They show up in higher mortgage and student loan payments, slower wage growth, and a larger cost for younger generations entering the housing market at today’s higher interest rates. If debt continues to grow faster than the economy, these costs will continue to weigh on American households.
- Center for American Progress
What Voters Say about the Debt-Affordability Connection
Voters are deeply concerned that the rising debt is making life less affordable, and they are ready to support leaders who advance clear solutions to address the mounting debt.
92% of voters are concerned that the debt is increasing inflation and the price of goods and services
88% of voters are concerned that the debt’s effect on interest rates is increasing personal borrowing costs
82% of voters say a candidate having a plan to address the debt is a deciding factor in whether they would support the candidate in November
~ Jeremy Rosen
Peter G. Peterson Foundation
