US national debt is now bigger than the economy for first time since World War II
The Independent • • business
Key Points:
- The U.S. national debt has surpassed the size of the economy for the first time since World War II, reaching $31.27 trillion compared to a GDP of $31.22 trillion, putting debt at 100.2% of GDP.
- The Congressional Budget Office projects the debt will reach 108% of GDP by 2030 and 120% a decade later, warning this could slow economic growth and deter private investment.
- The government is running a significant budget deficit, spending $1.33 for every dollar collected and facing a projected $1.9 trillion deficit this year.
- Despite economic concerns, President Trump highlights strong employment and investment, though public approval is low amid inflation and affordability worries.
- Experts warn that rising debt threatens future prosperity by increasing interest costs, inflation, and fiscal vulnerability, urging lawmakers to take corrective action to ensure financial sustainability.
