The national debt in the United States, once a hot topic in presidential debates, seems to have taken a back seat in the 2024 election cycle. Despite the debt reaching $28 trillion, nearly 99% of GDP, and projected to rise to $51 trillion in the next decade, neither Donald Trump nor Kamala Harris have addressed the issue in their campaigns.
Both candidates have proposed policies that would significantly increase the deficit, with independent budget forecasters estimating that Harris’s plans could add $2.6 trillion to the deficit while Trump’s proposals could increase it by $1.2 trillion. The lack of focus on the debt has raised concerns among economists, who warn of potential economic repercussions if the debt continues to grow unchecked.
While the US has advantages in managing its debt due to the dollar’s status as the world’s primary reserve currency, there is a limit to how much debt the economy can sustain. Economists predict that publicly held debt surpassing 200% of GDP could lead to a default, which would have severe consequences for the global economy.
Despite the grim outlook, politicians and voters seem unwilling to address the issue, preferring grandiose promises over difficult choices. If action is not taken soon, the government may find itself unable to invest in growth or respond to emergencies, as all revenues would be directed towards social security and debt interest payments by the mid-2030s.
Ultimately, addressing the national debt will require a combination of spending cuts and higher taxes, both of which are likely to be unpopular. However, delaying action will only make the situation more challenging in the future. As the debt continues to climb, the need for a serious and sustainable solution becomes increasingly urgent.
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