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Trump First President To See National Debt Hit 100% Of GDP Since Harry Truman
24/7 Wall St. • • business
Key Points:
- Debt held by the public reached 100.03% of GDP for the fiscal year ending Sept. 30, marking the first time since 1946 that this ratio hit triple digits, according to The Wall Street Journal.
- The $32.2 trillion publicly held debt reflects borrowing owed to outside lenders, a preferred measure by economists over gross federal debt, which includes intra-governmental holdings.
- The increase in debt ratio stems from decades of tax cuts, emergency spending, and an aging population, with no single president or party solely responsible for the rise.
- Fiscal 2026 deficit is projected near $2 trillion (6.2% of GDP), with rising interest costs on debt posing a significant fiscal challenge amid higher-than-expected Treasury yields.
- Future debt-to-GDP ratio movements depend on GDP revisions, sustained high interest rates, and Congressional action on Social Security funding to avoid automatic benefit cuts after 2032.
