As of 2025, the U.S. national debt has reached $38 trillion, growing at an accelerating pace compared to previous decades of continuous borrowing. This figure now exceeds the nation’s annual gross domestic product (GDP) by more than $7 trillion, with projections indicating another trillion dollars added roughly every five months.
The nonpartisan Peterson Foundation warns of potential credit rating downgrades, particularly in light of legislation dubbed the “Big Beautiful Bill,” which is expected to add $4.1 trillion to the national debt over the next decade. To address the crisis, experts point to the Committee for a Responsible Federal Budget (CRFB), a nonpartisan group advocating for sustainable fiscal policies that support broad economic opportunity.
CRFB describes the current fiscal environment as deeply dysfunctional: budgets are not passed on time, deadlines are ignored, and major spending drivers remain unaddressed. Programs like Social Security and Medicare are projected to exhaust their trust funds within seven years, yet there is little public discussion from policymakers about preventing this outcome.
The U.S. is no longer ranked among top-tier credit risks like Germany or Canada, resulting in higher borrowing costs. This trajectory leaves future generations burdened with escalating debt and widening inequality between wealthy and middle-income households.
The core imbalance lies in spending, which accounts for 23% of GDP, outpacing revenue at 17% of GDP. Key drivers of rising expenditures include increasing healthcare costs, an aging population, and surging interest payments—which now match defense spending in scale. These growing obligations threaten to crowd out essential public investments and weaken the nation’s ability to respond to future economic crises.
CRFB emphasizes the need to overcome political polarization and institutional dysfunction. Notable advocates include former Ohio Governor and Republican Congressman John Kasich, and former Democratic Congressman, CIA Director, and Defense Secretary Leon Panetta—both of whom exemplify constructive cross-party dialogue. They agree that government must operate with honesty, efficiency, and accountability.
Excessive influence by the wealthiest individuals over media and policy undermines equitable progress. The ultra-rich must contribute a fairer share to the tax system. At the same time, strategic spending reductions and economic growth are necessary to preserve the viability of the American Dream.
While some progressive voices downplay deficit concerns and certain conservative figures advocate for zero debt, neither extreme is realistic. Eliminating the national debt entirely is unfeasible, but bringing it under control is imperative.
The goal should be to halt the debt’s growth relative to the economy within a decade and gradually reduce it to historical averages over the long term. Over the past 50 years, national debt has averaged 49% of GDP—a reasonable target for 2050.
Achieving this would require increasing annual revenue to about 21% of GDP, primarily by eliminating tax deductions, exclusions, preferences, and credits—without raising tax rates. Simultaneously, spending must be brought down to 21% of GDP through a freeze on domestic and defense budgets, healthcare reform, and adjusting Social Security benefits for the top 25% of earners.
The CRFB website features a “debt fixer” tool allowing users to design their own fiscal plans, encouraging civic engagement. Ultimately, sustained public pressure is needed to compel elected officials to adopt a fiscally responsible budget framework. Without action, confidence in U.S. financial markets may further erode, undermining economic prospects for future generations.
— news from Boerne Star
— News Original —
Surging national debt can cripple economy
PROGRESSIVE VIEWS n nIn 2023, I wrote: “The current national debt is a whopping $32 trillion … the debt continues to grow regardless of which political party is in power.” n nGuess what, gross national debt is now $38 trillion and is growing faster than ever after two decades of continued borrowing. n nOur debt exceeds current gross domestic product (GDP) by over $7 trillion. GDP is the value of all the goods and services produced annually in the U.S. At this pace we will be adding another trillion dollars every five months. n nThe non-partisan Peterson Foundation forecasts further debt rating downgrades as the “Big Beautiful Bill” adds $4.1 trillion to our national debt over the next 10 years. n nTo better understand our debt and find solutions, I recommend looking to The Committee for a Responsible Federal Budget (CRFB). They are a nonpartisan organization promoting sensible tax and spending policies that encourage economic growth and opportunity for all Americans. n nCRFB assesses our current situation as bleak: “The reality is that we’re becoming distressingly numb to our own dysfunction. We fail to pass budgets, we blow past deadlines, we ignore fiscal safeguards and we haggle over fractions of a budget while leaving the largest drivers untouched. n n“Social Security and Medicare, for example, are just seven years from having their trust funds depleted, and you don’t hear anything from our political leaders on how to avoid such a disaster,” it says. n nWe are no longer a top-tier credit risk like Germany and Canada. This means higher borrowing costs. We are leaving a bleak legacy for our children who will be saddled with ever-increasing debt and an ever-increasing gap between the rich and the middle class. n nSimply put, we have too much spending (23% of GDP) and not enough revenue (17% of GDP). The main components driving spending are rising healthcare costs, an aging population and skyrocketing interest costs. Rising interest costs, which are now as much as defense spending, will squeeze out essential programs and hamper our ability to respond to future economic downturns. n nCRFB also strives to address the division, distrust and dysfunction threatening our democracy. Two of CRFB’s advocates who I admire are former GOP congressman and Ohio Gov. John Kasich and former Democratic congressman, CIA director and Secretary of Defense, Leon Panetta. Both are thoughtful leaders and are wonderful examples of how to communicate when we have divergent political views. They both agree that our government must be honest, efficient and effective. n nUnfortunately, the ultrarich have way too much power to manipulate the media and government to protect and grow their wealth. They should start paying their fair share. We also have to reduce expenditures and grow our economy to keep the “American Dream” a reality. n nSome liberal pundits dismiss the idea that our huge deficit is a problem, and conservative pundits say we must have no debt. I disagree with both. Eliminating the national debt is simply impossible but bringing it under control is essential. n nWe should stop the rise of the debt as a share of the economy within 10 years and implement a plan to reduce the debt to historical levels in the longer term. Over the last 50 years our debt has averaged 49% of GDP and that would be a realistic target by 2050. n nWe will need to raise yearly revenue to about 21% of GDP by eliminating most deductions, exclusions, preferences and credits. It would not be necessary to raise tax rates. n nAt the same time, we must bring spending down to that same 21% of GDP over the next 10 years by freezing domestic and defense spending, reforming healthcare and putting Social Security on a solid footing by reducing benefits to the top 25% of earners. n nOn the CFRB website you can go to the debt fixer page and develop your own plan if you don’t agree with my suggestions. n nBottom line, we must pressure our elected officials to develop a fiscally sustainable approach to the federal budget. We must not let confidence in U.S. markets further erode, which will cripple economic opportunity for future generations. n nTo learn more, check out the Kendall County Democratic Party website: kcdems.us.