Bank of America CEO Brian Moynihan and Joao Gomes, vice dean of Wharton, warn of an impending fiscal crisis due to escalating US national debt. They call for prioritizing debt payment, tightening fiscal policies, and a fundamental change in government budget management.
The Congressional Budget Office (CBO) predicts public debt could reach 166% of the GDP by 2054, growing to an estimated $141.1 trillion from the current $34 trillion. Factors contributing to this projection include unsustainable economic policies, increasing mandatory spending, and the retirement of the baby-boom generation which puts added pressure on Social Security and Medicare.
The CBO also indicates the ratio of debt to GDP will surpass the previous World War II record by 2029. As a result, economic progress may be limited. They suggest proactive strategies, such as economic reforms, restructuring public debt, or altering fiscal policies to manage the growing fiscal burden.
Surging debt burdens future generations; each newborn shares $82,590, escalating to $209,707 by age 30.
Biden constantly talks about canceling college loan debt, but he has no problem giving America's kids more government debt – whether they went to college or not. The student loan debt just comes back to them in a different wrapping paper. t.co/i0OJUBliDi
— The Redheaded libertarian (@TRHLofficial) April 4, 2024