The highly public spat between Tesla CEO Elon Musk and President Donald Trump over the One, Big, Beautiful Bill highlights an ongoing, decades-long debate over national debt. The focus of this article is to explore a potential scenario and suggest a way to invest in protection against it.
That path is via life and retirement insurance companies like Prudential Financial (PRU 0.18%), MetLife (MET 0.75%), and Corebridge Financial (CRBG 0.18%). Here’s why.
Rising debt, rising debt servicing payments
This chart gets to the heart of the matter. As shown below, the U.S. national debt has increased substantially, and so has the level of debt in relation to the country’s gross domestic product (GDP). The shaded areas show recessionary periods, including the financial crisis of 2008-2009 and the pandemic, whereby GDP contracted and spending soared, so naturally, the debt-to-GDP ratio did, too.
Still, the…
