The president has just signed a new budget that drastically cuts taxes without decreasing government spending. When asked how he plans to address the dramatic increase in deficits that will occur due to the tax cuts, the president responds, "We’re going to see some amazing economic growth because of this new policy, so much growth that we’re going to grow our way out of any short-term increases to government debt." If this extra economic growth doesn’t materialize, what are some of the risks to the U. S. economy? Interest payments on the federal debt will consume a larger portion of the federal budget, potentially displacing other government priorities. It places an unsupportable burden on future generations. Higher government debt may make future borrowing more difficult. It gives foreign creditors substantial control over U. S. economic policy.