Everyone knows that spending has gone through the roof, so obviously the amount of our budget being gobbled up by interest payments is surging, right?
As this chart shows, interest payments as a percentage of our total government outlays has declined pretty dramatically since 1980.
Update: The original chart below shows interest payments as a percentage of net expenditures, and it’s been suggested to us (by @alea_)that interest payments as a percentage of tax receipts might be more reflective of the point we’re getting across.
Well, it shows the same thing.
Here was the first chart we showed.
Surprised? You shouldn’t be.
Borrowing has gotten much, MUCH, cheaper since those days. The red line is the yield on the 10-year Treasury