SUSTAINABILITY: National debt grew by $2.5 trillion in 2024; projected to rise.
As 2025 approaches, America’s fiscal health is in serious trouble with a ballooning federal debt exceeding 100% of the GDP. [It’s the publically held debt that just exceeded GDP. Total debt is nearly 25% higher than GDP. -Steve]
It’s projected to get even worse.
A year ago, the U.S. national debt amounted to more than $33.8 trillion, according to Senate Republican Joint Economic Committee data. As of Dec. 24, 2024, the debt has climbed to nearly $36.3 trillion, a $2.5 trillion increase within the past 12 months.
If the average daily rate of debt growth over the past three years continues, the gross national debt will reach $37 trillion within 5 months, $39.2 trillion in 2026, and $40.95 trillion in 2027, according to the most recent Congressional Budget Office 10-year forecast.
Economist Romina Boccia, director of Budget and Entitlement Policy at the Cato Institute, told The Center Square that the “excessively high, and growing unsustainably fast” national debt has “real implications” for the future of the country.
Boccia referenced how the high levels of debt caused by federal spending have depressed economic growth, particularly over the past four years, leading to decreases in take-home pay, job opportunities and entrepreneurship.
Spending cuts, deregulation, and growth are the only way out. Trump promised all three, and his ability to deliver will go far in determining his legacy.