Question: a. If the debt-to-GDP ratio rose to 100% and the interest rate on the debt were 5% per year, what fraction of GDP would go toward paying interest on the debt?
b. If this happened, would interest on the debt be a bigger share of GDP than Social Security is today?
c. In your opinion, do you think that Americans would tolerate spending this much of the national income on interest payments for past spending? More important, do you think Americans would want their politicians to stop making the interest payments and just default on some or all of the federal debt? Why or why not?