The Challenge We Face
The federal government spends more money than it collects in revenue (including taxes). How? By borrowing to cover the gap, also known as the deficit. The government is borrowing trillions each year, adding to the national debt faster than ever and creating an uncertain economic future for us all. Rising debt pushes inflation and interest rates higher, contributing to higher everyday costs, including student loans, car payments, and mortgages.
The government owes interest on the national debt, just as you might owe interest on student loans or credit card bills. Those interest payments have ballooned, which can crowd out resources that could otherwise be spent on education, infrastructure, and healthcare — investments in our future. The result is a weaker economy, with slower wage growth and fewer economic opportunities for the next generation.
This also poses an issue of fairness. Young Americans will inherit the consequences of decisions made before they could vote, unless lawmakers begin to make thoughtful, forward-looking choices to strengthen our country’s fiscal future.
The good news is, there are many proven, practical solutions available to put our nation on a better path. A strong fiscal foundation creates conditions for healthy economic growth, through:
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Greater access to capital;
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Increased public and private investments;
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Stronger business and consumer confidence; and
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A solid safety net that supports everyone.
With these solutions, we can create a thriving economy with higher wages and greater opportunities that improve the lives of all Americans — a future worth building.
Dive In: The Numbers
How large is the national debt?
The national debt currently stands at $40 trillion. To put that in perspective:
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That’s $117,000 of debt for each and every person in the United States.
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The debt has grown more than 600% since 2000.
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It’s larger than the combined economies of China, Germany, Japan, the UK, and India combined.
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It could cover the cost of a four-year college degree for every high school graduate in the country for the next 119 years.
And the debt continues to grow each day. By 2030, the debt held by the public (the portion of the national debt owed to outside investors like individuals, businesses, and foreign governments) will reach a record-high compared to the size of the economy, according to the Congressional Budget Office (CBO), a nonpartisan agency that provides objective analysis to Congress of what our economic and budgetary decisions actually cost.
Why is the nation’s debt rising so dramatically?
The federal government spends more than it collects in taxes (and other revenues). This gap — or deficit — will only continue to grow, based on current legislation.
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Federal spending will rise from 23.3% of gross domestic product (GDP) in 2026 to 27.9% in 2056, according to CBO.
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Revenues are also projected to increase during that period, but more slowly — from 17.5% to 18.8% of GDP.
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