The United States’ national debt, currently standing at $38 trillion and exceeding 120% of annual economic output, demands action, experts warn. The nonpartisan Peter G. Peterson Foundation gathered a series of distinguished national economists and historians from outside the foundation in a collection of essays published Thursday. They analyzed risks to U.S. economic strength, dollar dominance, and global leadership. The experts also explored the national debt’s impact on interest, inflation and financial markets, with some characterizing this moment in history as a crisis. Collectively, they argue that the nation is operating under a dangerous fiscal gamble.
Assessing the mounting liabilities, Council on Foreign Relations President Emeritus Richard Haass and NYU professor Carolyn Kissane delivered a stark judgment: “In simpler terms, we are guilty of spending our rainy-day fund in sunny weather.” Meaning, the government has little “dry powder” left to fund a major military effort or stimulate the economy during a crisis.
