Slow performance, higher fees for borrowing, decreased capacity to solve issues, and increased taxes are some point often used to argue against increasing government debt.
Greater persistent federal debt is correlated with higher interest rates, which can deter private sector investment. Higher interest rates restrict investment opportunities, which lowers economic output.
Some investors may become less confident in the government's capacity to repay its debt as it continues to climb. In order to assure a stronger return on their investment, investors may start to demand higher interest rates on government debt.
A higher amount of public debt may make it harder for the government to respond to upcoming crises. When the federal debt is already at record-breaking levels, deficit hawks could be less inclined to offer stimulus. The government might not be able to react as swiftly if current debt levels are sustained.
We might eventually have to pay the piper, which would probably mean paying more in taxes.
To read more about income tax