Debt and the Deficit: Reaganism with Michael Strain
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Debt and the Deficit: Reaganism with Michael Strain
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On this episode of Reaganism, Ronald Reagan Institute Director Roger Zakheim sits down with Dr. Michael Strain of the American Enterprise Institute to discuss the growing U.S. federal debt and deficit, focusing on why America’s debt-to-GDP ratio and rising interest costs are becoming increasingly unsustainable even though the country can still borrow at relatively favorable rates. They compare the U.S. with China, the U.K., and Europe to explain why Treasury demand remains strong, and they explore what could finally force fiscal reform — including a bond market shock, rising interest rates, or automatic pressure from Social Security and Medicare trust fund shortfalls. The conversation also examines the political barriers to entitlement reform, the bipartisan reluctance to cut spending or raise broad-based taxes, and whether inflation, housing affordability, or a future economic scare could create the conditions for real action.