Who bears the burden of the U.S. federal debt?
A) current taxpayers
B) future taxpayers
C) foreign buyers of U.S. debt
D) the government
E) the Federal Reserve

Question

Quizplus · Accepted Answer

The burden of the U.S. federal debt falls on future taxpayers, as they will eventually have to pay back the debt and bear the interest costs. Current taxpayers may also feel the burden through tax increases or reduced government spending that may be necessary to manage the debt. Foreign buyers of U.S. debt and the Federal Reserve play a role in holding and managing the debt, but they do not bear the burden in the same way as taxpayers do. The government may also feel the burden in terms of reduced flexibility in budgeting and potential consequences of high debt levels, but ultimately, it is taxpayers who will be responsible for paying back the debt.

Who Bears the Burden of the U