Top Economists Sound Alarm as US National Debt Surpasses $38 Trillion

The United States national debt has surpassed $38 trillion, exceeding 120% of the country's annual economic output, prompting a warning from top economists and historians that the nation is operating under a "dangerous fiscal gamble." The nonpartisan Peter G. Peterson Foundation published a collection of essays by distinguished national economists and historians, who analyzed the risks to U.S. economic strength, dollar dominance, and global leadership. According to the experts, the national debt's impact on interest rates, inflation, and financial markets is a pressing concern. Council on Foreign Relations President Emeritus Richard Haass and NYU professor Carolyn Kiss, among others, characterized the current situation as a crisis. "We are guilty of spending our rainy-day fund in sunny weather," said Haass, emphasizing the need for immediate action to address the growing liabilities. The economists and historians explored the national debt's far-reaching consequences, including its potential to erode the dollar's dominance and undermine U.S. global leadership. They also highlighted the risks of rising interest rates and inflation, which could have a devastating impact on the economy. "The national debt is a ticking time bomb, and it's only a matter of time before it explodes," warned economist and historian Niall Ferguson. The experts' warnings come as the U.S. national debt continues to grow at an alarming rate. The Peterson Foundation's analysis revealed that the debt has increased by over $10 trillion since 2020, with no signs of slowing down. The foundation's chairman, Michael Peterson, called for a bipartisan effort to address the national debt, emphasizing that "the time for action is now." The national debt's impact is not limited to the United States. The economists and historians noted that a decline in the dollar's value could have far-reaching consequences for the global economy, including higher prices for imported goods and a loss of confidence in the U.S. financial system. "The national debt is a global problem, and it requires a global solution," said economist and historian Joseph Stiglitz. As the national debt continues to grow, policymakers are under increasing pressure to take action. The Peterson Foundation's analysis provides a stark reminder of the need for fiscal responsibility and a long-term plan to address the national debt. With the U.S. economy facing numerous challenges, including rising inflation and a slowing growth rate, the experts' warnings serve as a timely reminder of the importance of addressing the national debt before it's too late. The Peterson Foundation's report is the latest in a series of warnings from economists and historians about the dangers of the national debt. As the U.S. national debt continues to grow, the world watches with bated breath, waiting to see if policymakers will take action to address this pressing concern.