US Military is now no longer king of the budget spending

The U.S.’ debt is skyrocketing – and soon the country will spend more on servicing its debt than it will on national defense – and a little further out it will spend more on debt than on all nondefense discretionary programs combined.

While America’s debt has skyrocketed, low inflation and international demand for Treasury bonds has held down interest costs, but with the Federal Reserve hiking interest rates, this is expected to change.

As reported by The Wall Street Journal citing data from the Congressional Budget Office (CBO), the U.S. will spend more on interest than it spends on Medicaid in 2020, in 2023 interest spending will exceed national defense spending, and by 2025 it will spend more on interest than on all nondefense discretionary programs combined.

The CBO estimates that interest spending will rise to $915 billion by 2028, equivalent to 3.1 percent of gross domestic product, and well above the interest costs of $263 billion, or 1.4 percent of gross domestic product in 2017, as calculated by the Wall Street Journal.

www.foxbusiness.com/economy/us-debt-payments-will-soon-exceed-military-spending