US national debt: Peterson Foundation warns of lower wages, fewer jobs for Gen Z

Key Points:

• The Peter G. Peterson Foundation, with data analysis from EY’s QUEST practice, warns that rising U.S. debt could reduce the number of jobs by 1.2 million by 2035 and up to 3.6 million by 2075, disproportionately impacting younger generations like Gen Z and Gen Alpha.
• EY’s analysis also predicts a significant decline in take-home pay over time if debt accumulation continues unchecked, with wages falling by 0.6% by 2035 and 5.3% by 2075 compared to a stabilized debt scenario.
• Interest payments on the national debt have surged to $857 billion annually, exceeding the combined budgets of several major federal departments, highlighting the growing fiscal strain on the government.
• JPMorgan Chase CEO Jamie Dimon warns of a potential bond market crisis due to America’s borrowing habits and stresses the importance of proactive fiscal management to avoid economic upheaval.
• The Peterson Foundation urges younger Americans to advocate for responsible fiscal policies, emphasizing that current decisions on national debt will have lasting economic consequences for future generations.