The United States is on a collision course with its own history, and about to break fiscal records in the worst possible way. With current policies and spending, the country’s national debt will surge to 120% of GDP by 2030, eclipsing the previous record of 106% set right after World War II. Fiscal watchdogs are warning that such high levels of debt effectively amount to a self-inflicted wound, as the U.S. abdicates its responsibility to its citizens, sustainable economic growth, and national security.
The U.S. is currently sitting on a federal budget deficit of $1.9 trillion and a national debt worth 101% of GDP, according to an economic outlook report released Wednesday by the Congressional Budget Office (CBO). In 10 years, that number will rise to 120%, but it will take just four years to beat the current high-water mark set in 1946, after years of massive deficit spending to finance U.S. efforts during World War II.
