‘Cut up the credit cards:’ Congress is getting brutal about ‘embarrassing’ $31 trillion national debt
The value of publicly held debt has officially exceeded the size of the U.S. economy, and members of Congress are increasingly sounding the alarm about their country’s fiscal direction.
According to a press release issued Thursday by the Committee for a Responsible Federal Budget (CRFB), based on new data from the Bureau of Economic Analysis, the public debt stood at $31.27 trillion as of March 31, while the nominal GDP estimate for the previous 12-month period was $31.22 trillion; This increased the debt to GDP ratio to 100.2%.
these signs another threshold For the US debt burden that now requires more than $1 trillion in interest payments each year.
cautionary quotes It comes from many corners of the economic sphere: Fed chairman Jerome Powell wants policymakers to have a grown-up conversation about spending, while Bridgewater founder Ray Dalio has long warned of an economic “heart attack” in which public investment is crowded out by debt payments.
And CEO Jamie Dimon JPMorgan Chase, just this week he said He expects a bond crisis to emerge at some point due to the problem not being addressed in a timely manner by policymakers.
The news reignited debate among policymakers about what to do to manage the U.S. fiscal deficit. Following news that debt now dwarfs the size of the economy, Sen. Rick Scott (R-Fla.) turned to X, saying it was “just a shame.”
“The consequences are everywhere,” he added. He said debt is a drag on the economy as American families are “dealing with inflation and high costs of living due to Washington’s spending addiction.” “It’s only going to get worse until they cut out their credit cards and get serious.”
Meanwhile, Nikki Haley, a former U.N. ambassador during Trump’s first presidency, wrote in X that America has passed a “dangerous turning point.” He added: “When the bill comes due, we expect higher taxes, a weaker dollar, fewer services, a weaker military – and our children will continue to pay the price.”
These statements ring true for many Americans. A survey released yesterday by the Peter G. Peterson Foundation, an organization that advocates for financial stability, found that voters are increasingly concerned that the national debt is increasing the cost of living: 92% of voters (including 94% of Democrats, 92% of independents and 89% of Republicans) said they are concerned about current debt levels affecting the prices of food, energy and housing.
On Wednesday, Sen. Rand Paul (R-Ky.) explained why he opposes the war in Iran in favor of focusing on domestic missions. “I think the biggest national security risk we face is our debt, and the more debt we get into, the more at risk we become,” he said. Fierce Moderates podcast.
