The deficit debate may seem like an esoteric argument among economists and politicians," says Irwin Kellner, an economist at New York City's Manufacturers Hanover Trust, "but it is actually very much a part of people's lives." Indeed, the Government's record deficits are making an almost direct hit today on the average American's checkbook. The major effects:
Interest rates. When consumers borrow money to buy a house, car or dishwasher, they are paying higher rates because of the deficits. Historically, the cost of borrowing funds is about 3% higher than inflation. At present, many...
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