Tuesday Topic: COVID-19, One Year Older and Deeper in Debt

I know there are some people much smarter than I as well as more informed on the topic that suggest the size of the national debt is no longer the problem it once was. My logic can't understand how running up debt like our federal government has for decades is not still a problem. As long as we look to our elected officials to solve big problems we'll always have large national debt. Who can possibly get re-elected term after term if they making decisions that are painful to their voters in the short-term.

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John Tyson
CFO/SVP
Altamaha Bank & Trust Company
Vidalia, GA
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Original Message:
Sent: 03-08-2021 14:23
From: Barb Rehm
Subject: Tuesday Topic: COVID-19, One Year Older and Deeper in Debt

A year ago this week, we realized the coronavirus would change our lives. We weren't sure exactly how, but we knew we'd have to adjust our behavior and our businesses. While I hope we're through the worst of COVID-19, we're not in the clear yet. Congress is expected to finalize a $1.9 trillion package designed to deliver aid to people, businesses, and state and local governments. (The Wall Street Journal is out Monday with a concise summary of the bill.) As you no doubt know, there was a ton of debate over the size of the government's relief package, with Democrats supporting a bolder strategy and Republicans favoring a more targeted approach. Since the Democrats have more votes, the package is big. And that leads me to the main story I want to share with you today: "The National Debt is Big and Getting Bigger. Does it Matter?" This American Banker story is excellent – deeply researched and well written. It doesn't take sides; it just lays them out for you and explains the intricate relationship between debt, interest rates, and inflation. I'm a risk-averse person by nature so I see $28 trillion and think "Holy Cow, this is unstainable and stupid." But I know plenty of people with more knowledge on this topic disagree.

What do you think? Does the $28 trillion in national debt worry you? Why? Please share your thoughts.

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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