Question

Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it?

Short answer

Interest payments are one component of government spending that grows in lockstep with the federal debt.

Step-by-step solution

Step 1. Concept of federal debt

The federal government's borrowings are referred to as federal debt.

Federal spending refers to the government's expenditures on national defence, social security, health care, and interest payments.

Step 2. Explanation

National defence, social security, health care, and interest payments are all included in federal spending. The word "federal debt" refers to the government's borrowings. When a person's debt grows, so does the amount of interest that must be paid.

As a result, the item of government spending that automatically increases as more debt accumulates is interest payables.