As 2025 approaches, America's financial situation is worsening, with federal debt surpassing 100% of GDP. The national debt was over $33. 8 trillion a year ago and has increased to nearly $36. 3 trillion as of December 24, 2024. It’s projected to reach $37 trillion in five months and could rise to $40. 95 trillion by 2027.
Economist Romina Boccia from the Cato Institute warns that this growing debt has harmful effects, leading to economic slowdowns and lower wages. Additionally, the average interest rate the government pays on this debt has risen from 2. 378% to 3. 155%, intensifying a cycle of spending.
Boccia emphasizes the need for Congress to address spending on entitlement programs like Medicare and Social Security to control debt growth. She suggests forming a fiscal commission to help enact necessary reforms, despite the political challenges of such changes.
https://www.thecentersquare.com/national/article_95b90bbe-bd9c-11ef-93ee-f39e7d5a515f.html
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