Inflation's impact on national debt

Added: 2026-06-02

[00:00:00]And a way to combat inflation is to raise the interest rate. Cuz that brings the prices down. But when you raise the interest rate, that interest affects what we're paying on the debt. Just again, back to the credit card analogy, if you're paying a credit card and the the credit card company raises the interest rate on the principal that you owe, then suddenly you owe way more interest on the debt. Your interest payments every month have increased. So that's the bind that we ended up being in as a as a country is when we had the high inflation and again, inflation is one of the worst things that could possibly happen to our economy. And and this is one example of that. It's not just that the prices go up and things are more expensive for people, but things like this happen. It's it's just we have debt and there's no foreseeable future where we see right now that we're not going to have debt. When interest rates have to be risen to get inflation under control, then that compounds the the national debt problem. So that's what happened. If that makes sense, it's a it's a lot, but that's kind of how we ended up in the in this mess right now.