Bill Overview
Title: National Debt is National Security Act
Description: This bill establishes limits on the amount of public debt that may be held by foreign governments, entities, and individuals. The bill allows the President to waive the limits if the President determines and reports to Congress that an important national interest requires the waiver.
Sponsors: Rep. Franklin, C. Scott [R-FL-15]
Target Audience
Population: People globally affected by changes in U.S. debt holdings
Estimated Size: 331000000
- The bill imposes limits on the amount of U.S. national debt foreign entities can hold, implying impact on international holders of U.S. debt.
- The legislation affects financial markets globally due to restrictions on foreign investments in U.S. debt.
- Foreign governments with significant U.S. debt holdings will be directly impacted.
- U.S. citizens will indirectly feel the economic implications if foreign debt holdings are adjusted.
- The bill impacts economic policies, which may influence economic stability and security.
Reasoning
- Considering the policy targets foreign debt holders and can alter economic conditions, Americans will generally feel indirect effects. Most will be minor, but those in finance or industries relying on foreign investment may experience more substantial impacts. We must account for both direct and indirect exposures in varying economic contexts.
- The budget for implementing this policy is substantial over ten years, suggesting a broad-scale intervention impacting financial and economic structures. This adjustive process could, over time, influence interest rates, economic growth, and market stability, all affecting individual well-being.
- The distribution of impact among the population will vary, with higher sensitivity in financial sectors and less in isolated individual circumstances. Awareness and understanding of the policy implications may also vary, influencing its perceived importance.
Simulated Interviews
Investment Banker (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I see this policy as having a significant impact on how we manage our investment portfolios.
- It may limit some foreign investments, potentially increasing volatility in the short term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Small Business Owner (Dallas, TX)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- My main worry is whether this policy will lead to increased interest rates, affecting loans for my business.
- It's crucial that the administration handles this smoothly to avoid any economic disruption.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Software Developer (San Francisco, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I think the policy could influence how foreign investments in tech companies are managed.
- While it might be bad for some foreign investments, it could stabilize some financial uncertainties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I don't follow these issues closely, so I'm not sure how it impacts me directly.
- As long as it doesn't affect my job prospects, I don't see a big difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
University Professor (Chicago, IL)
Age: 54 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This is a strategic policy that could bolster national security frameworks.
- It's crucial for mitigating foreign influence in domestic economics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
College Student (Boston, MA)
Age: 19 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 18/20
Statement of Opinion:
- I find this policy interesting as it reflects on the U.S.'s stance on foreign influence.
- Observing its effect on international relations will be part of my studies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Real Estate Agent (Miami, FL)
Age: 37 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- There could be an impact on real estate markets if foreign investments drop.
- This policy might stabilize certain areas of the market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Software Engineer (Seattle, WA)
Age: 50 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- This could affect tech companies' global strategies, especially if diplomatic tensions arise.
- Financial stability is quite important for our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Nurse (Phoenix, AZ)
Age: 44 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I'm more concerned about how such policies maintain overall economic health.
- It's essential for public services like healthcare to remain unaffected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (Washington, D.C.)
Age: 65 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 1/20
Statement of Opinion:
- Policies like these remind me of the importance of balancing economic sovereignty with market flexibility.
- I am curious about the long-term impact of such fiscal strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $50000000 (Low: $30000000, High: $70000000)
Year 3: $50000000 (Low: $30000000, High: $70000000)
Year 5: $50000000 (Low: $30000000, High: $70000000)
Year 10: $50000000 (Low: $30000000, High: $70000000)
Year 100: $50000000 (Low: $30000000, High: $70000000)
Key Considerations
- International relations could be impacted by restrictions on foreign debt holdings, possibly affecting trade and diplomatic relations.
- Domestic investors might need to increase their share in purchasing U.S. debt, impacting domestic capital allocation strategies.
- Market volatility might arise as global debt markets adjust to new limits on U.S. debt holdings.