Large Bank Supervision Forum eBook

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Most Economists Warn Against High Debt/GDP But Not All…

Internal Use Only

Some Implications of Higher Debt/GDP: • Reduced Public Investment (from Higher Interest Payments) • Higher Cost of Capital (Crowds Out Private Investment) • Fewer Economic Opportunities for Americans • Greater Risk of Fiscal Crises • Challenges to National Security (with a Smaller Budget) • Jeopardizes the Federal Safety Net (Social Security, Medicare, etc.)

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