Economist Peter Morici breaks down what the national debt is, why it ballooned to more than $34 trillion and what it means for Americans.
As Americans’ political focus turns towards this fall’s elections, the winner of the presidential race will be confronted with a national debt that’s on pace to reach a record-setting level in the next four years, as well as looming deadlines that may force their hand on fiscal policy.
A recent update to the federal government’s long-term budget outlook by the nonpartisan Congressional Budget Office (CBO) found that budget deficits are projected to widen from about $1.9 trillion this year to more than $2 trillion annually starting in 2030, before nearing $2.9 trillion in 2034. In that period, the debt held by the public will rise from more than $28 trillion this year to over $50 trillion in 2034.
When compared to the size of the U.S. economy in terms of gross domestic product, debt held by…
