U.S. News & World Report- August 27, 2025 U.S. News recently published “How the National Debt Affects You,” a deep dive into how rising federal debt affects interest rates, taxes, and markets.

 

Mr. Schneider explained:

 

“Unlike a household, the government can tax and issue currency, so it will never go broke.”

He also pointed out:

 

“The national debt is a lot less scary when you realize that most U.S. Treasury securities are held by American investors, pension funds, banks and even the Federal Reserve. We owe this debt to ourselves as a nation.”

 

“Interest payments are circulating right back into the U.S. economy.”

 

And he reassured investors:

 

“While debt could matter in the very long run, it probably isn't the ticking time bomb that many fear.”

 

Finally, he reminded readers:

 

“Long-term investment returns are driven by economic growth, corporate profits and innovation, not the national debt.”

The article underscores that while national debt is an important consideration, it’s just one of many factors that shape long-term returns — and it shouldn’t distract investors from disciplined, goal-based planning.

 

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