According to a recent annual report by the Government Accountability Office (GAO), the U.S. debt is expected to soar to 200% of GDP, heightening the risk of an economic downturn and increasing fiscal instability.

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As of the end of 2024, U.S. public debt reached $28.7 trillion, nearly matching the entire Gross Domestic Product (GDP) of the nation.

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Instead of tackling the debt problem, every year the debt ceiling is raised. This is like never paying your credit card bill and instead increasing your borrowing limit every year from 30,000 to 50,000 to 200,000. At that pace, eventually the interest rate on the credit becomes bigger than all other expenses.
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This just happened to the United States. Interest payments on debt exceed the costs of all discretionary spending.
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In fiscal year 2024 alone, the federal government spent approximately $882 billion just on interest payments. This exceeds the government’s annual spending on Medicare and defense.

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The escalating debt and its servicing costs pose concrete threats to consumers:
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Higher prices: High U.S. debt levels devalues the U.S. dollar. This increases costs household items like groceries and furniture, as well as mortgages, car loans, and credit card debts.
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Reduced Services: With more money directed towards servicing the debt, there will be less money for essential services like healthcare and education.
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Increased Taxation: Without massive cuts to spending, taxes would need to increase significantly to fund the deficit.
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Economic Instability: High debt levels can lead to greater economic uncertainty, potentially resulting in slower job growth and wage stagnation.
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Higher Interest Rates: As the government borrows more to cover deficits, it could drive up interest rates, making loans and credit more expensive for consumers.
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