On the trap of infrastructure investment and the resulting carrying cost of that borrowed money, on top the operating cost of maintaining the new infrastructure, leaving no capacity to improve in the future at the EOL of the new refurbished whatever. This is entropy plus encumbrance like barnacles on a ship

Aka as stressed that the debt service is already starting to crowd out government spending on basic needs such as infrastructure and education. About 1 in 5 dollars spent by the government are now repaying investors for borrowed money, instead of enabling investments in future economic growth.

What to know about Trump’s second term:

Staffing the administration: Here are the people Trump has picked for key positions so far. Plus, a look at recess appointments and how could Trump use them to fill his Cabinet.

Follow all of our coverage as Donald Trumpassembles his second administration.

It’s an issue on Trump’s radar. In his statement on choosing billionaire investor Scott Bessent to be his treasury secretary, the Republican president-elect said Bessent would “help curb the unsustainable path of Federal Debt.”

The debt service costs along with the higher total debt complicate Trump’s efforts to renew his 2017 tax cuts, much of which are set to expire after next year. The higher debt from those tax cuts could push interest rates higher, making debt service even costlier and minimizing any benefits the tax cuts could produce for growth.