While the U.S. economy shows the job market and research and development by companies are strong a local economist sees a problem.
Northwood University’s Doctor Timothy Nash tells Thursday’s Saginaw County Chamber of Commerce Percolator Club breakfast, he’s worried about the national debt. Nash says by the end of this year, the federal government will have a $900 billion deficit affecting interest rates, making buying a new house or car more expensive.
Nash said it took the country from 1776 until 1981 to reach a debt of $1 trillion. The current national debt is $21.925 trillion. If you had to help pay off the debt, as a citizen, your share would be $66,783. As a taxpayer, your cost would be $179,226.
With today’s global economy a trade war, with tit for tat tariffs, will hurt the economy. Nash said Michigan’s economy will also be adversely affected, especially in agriculture, with fewer exports and the auto industry with a higher cost of component parts made in other countries.
As the partial shut down of the federal government continues, with no end in sight, Nash lays the blame for the stand off on both sides of the political aisle. He said American voters do not punish politicians for not playing well in the political sandbox.