Effective Interest Rates: While USA Debt Has Risen,
Net Interest Payments Have Fallen
USA Net Federal Debt Outstanding & Net Interest Payments, 1980 — 2010
BELO ne men me co — er ee we eet — ne cee ct tet — ie ee ct Ht ede lt at ee ts Ut es od i i! — at $500 mas Net Debt Outstanding
—Net Interest Payments
$8,000 ---- $400 mo mo & & 2 2 S $6,000 $300 = < £ g a 3) 5 rt 9 o & $4,000 $200 § Qa £ o o za z
$2,000 $100
$0 $0
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010
KP Source: White House Office of Management and Budget. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 163
Effective Interest Rates: Hypothetical Exercise — If USA 2009 Cost of Debt Was Paid at 30-Year Average Interest Rate Level of 6% vs. Current 2%, Annual Interest Cost Would Rise 3x to $566 Billion from $196 Billion
USA Actual & Hypothetical Net Interest Payments’, 1980 — 2010
BB me me re ew oe ws re ee nm rt a — SR RS RE re RS — ARE ro SSA ra nS — -Hypothetical Net Interest Payments, Assuming 4 30-Year Average Effective Interest Rate of 6.25% / S500 sa et — as a an — ER SS / - Actual Net Interest Payments / Would have BAO m-mmem- oF been $3708 1 higher
Net Interest Payments ($B)
$0 r T T T 1 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010
Note: * Hypothetical net interest payments calculation assumes all other variables (such as GDP, revenue, spending, debt KP levels, etc.) are held constant. Source: White House Office of Management and Budget. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 164
HOUSE_OVERSIGHT_020923