U.S. Debt Burden: How big is too big?

Perhaps no issue has attracted more commentary than the debt situation in the U.S. Beginning with the large defense-driven federal deficits and corporate leveraging of the 1980s, followed by excessive consumer borrowing of the 1990s and early 2000s, and culminating with the enormous state and federal deficits of the past decade, predictions of eventual doom for the U.S. economy have repeatedly come from all corners.

In their recent Global Insight special report, RBC Wealth Management’s Portfolio Advisory Group analysts ask the rhetorical question “how big is too big?” as they offer a concise examination of the U.S. debt burden. While readily acknowledging the issues facing the U.S. are large and require action, looking at the asset side of the U.S. ‘balance sheet’ gives readers reason to believe the situation is not yet dire.

Even factoring in two key unfunded liabilities – Social Security and Medicare – the report cautiously concludes that U.S. has the time, wealth and opportunity to meet its debt challenges. To request a copy of the report and learn more about how the economic issues related to it may affect your portfolio, please contact your RBC Wealth Management financial advisor or use the advisor locator tool to find an advisor near you.

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