What would happen if the U.S. paid off its debt?
Why It is America in so much debt? Tax Cuts. Large Tax cuts passed by Congress during the Presidency of George W. Bush Donald Trump They played a significant part in the The subsequent decline of government finances. the resulting growth in the national debt.
Why Does the The US owes China? From A national perspective China buys U.S. debt due to its complex financial system. The U.S. must be purchased by central bank Treasuries To prevent inflation from occurring, you can use foreign assets and other foreign assets.
What It happens if the US goes into default? It would It has a profound impact the Economy and people in the U.S. A default would Increase interest rates could lead to higher prices and inflation.. The stock market would U.S. investments also cause problems would Not as safe as they were once, especially in these instances if the U.S. credit rating was reduced