As the 2024 presidential election approaches, it seems that the issue of the national debt has taken a backseat in political conversations. Once a major talking point in previous elections, the national debt was scarcely mentioned in the first and only debate between incumbent President Donald Trump and Vice President Kamala Harris. The Republican Party, traditionally seen as champions of fiscal responsibility, also failed to address the debt or deficit in their platform document released in July.
Yet, the national debt is now more pressing than ever. Standing at around $28 trillion, or about 99 percent of GDP, the Congressional Budget Office projects that it will exceed $51 trillion in the next decade. Despite the urgency of the situation, both Trump and Harris have put forward policies that would further exacerbate the debt. Independent budget forecasters have struggled to keep up with the costly promises made by both candidates.
Economists warn that there is a point after which the debt cannot keep growing without serious economic consequences. The US government has approximately 20 years to take corrective action before reaching a point where no amount of tax increases or spending cuts could prevent a default. If such a default were to occur, it would have far-reaching implications for the global economy.
As the CBO predicts that all federal government revenues will be consumed by social security and debt interest payments by the mid-2030s, it is clear that action must be taken sooner rather than later. However, in a political climate where difficult choices are avoided, addressing the national debt may prove to be a bitter pill to swallow for both policymakers and voters.
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