The national debt is at historic post-war highs and rising unsustainably as a share of the economy. Trillion-dollar deficits will return next year.
Encouragingly, the president’s budget calls for reducing debt to 73% of GDP by 2028 and further thereafter. Unfortunately, this is achieved largely through gimmicks like fantastical economic growth and inflated savings. When the president’s budget is measured properly, we find debt would not fall but rise to at least 93% of GDP by 2028 and could even exceed the size of the entire economy.
This is bad news for economic growth and for future generations.