The U.S. national debt has reached $38 trillion, with the Congressional Budget Office warning that without significant policy changes, the country faces a fiscal crisis within four years.
The Numbers
- National debt: $38 trillion
- Annual interest payments: $1.2 trillion
- Debt-to-GDP ratio: 128%
- Projected 2030 debt: $45 trillion
CBO Recommendations
The CBO outlines three scenarios: raising taxes, cutting spending, or a combination. Interest on the debt alone now exceeds the entire defense budget, consuming 20% of federal revenue.
Both parties acknowledge the problem but disagree on solutions. Republicans push for spending cuts while Democrats advocate for higher taxes on corporations and the wealthy.
