Department of the Treasury

Borrow at Lower Interest Rates & Save $280 Billion per Year

The government borrows by selling mostly long-term bonds with an interest rate of around 4% to 5%. The government should borrow by selling more short-term bonds with an interest rate of 0.25% to 2%. Paying 2% instead of 4% on a $14 trillion debt would save $280 billion per year.

Tags

Voting

17 likes
Active
Idea No. 8505