This year’s budget deficit of the US is on track to top $1.9 trillion, or more than 6% of economic output, a threshold reached only around World War II, the 2008 financial crisis and the Covid-19 pandemic, The Wall Street Journal said this week.
“Publicly held federal debt, the sum of all deficits, just passed $28 trillion or almost 100% of GDP,” it noted. “If Congress does nothing, the total debt will climb by another $22 trillion through 2034. Interest costs alone are poised to exceed annual defence spending.”
Economists and policymakers already worry that the growing debt pile could put upward pressure on interest rates, restraining economic growth, said the report.
Polls show the public is concerned about the deficit, but they also prefer politicians who dangle tax cuts,…