Other factors include the still incomplete recovery in terms of the number of hours worked, the reduction of profit margins observed in 2021, and the government measures to reduce the impact of the energy crisis on household and business incomes. The increase in imported commodity prices is an unavoidable tax for the country.
So long as health-care costs continue to grow faster than the economy as a whole, as seems likely, federal spending on health and retirement programs would rise at a rate that risks placing the budget on an unsustainable trajectory. Specifically, large deficits will result in rising interest rates and an evergrowing ratio of debt service to GDP.