America’s Debt Is Now Bigger Than the GDP. Does It Matter?
The U.S. national debt has surpassed the country's GDP, reaching $31.27 trillion compared to a GDP of $31.22 trillion, marking the first time this threshold has been crossed outside of wartime since WWII. While some experts and politicians warn of long-term risks like higher taxes, reduced services, and economic vulnerability, others argue the 100% debt-to-GDP ratio is an arbitrary benchmark with little real-world significance. The debate centers on whether current fiscal policies are sustainable or if concerns are overstated, given the U.S.'s economic strength and global demand for its debt.
- ▪The U.S. national debt has exceeded GDP, reaching $31.27 trillion versus a GDP of $31.22 trillion.
- ▪This marks the first time the debt-to-GDP ratio has surpassed 100% outside of wartime since WWII.
- ▪Japan has maintained a debt-to-GDP ratio over 200% for years without experiencing predicted economic collapse.
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By Hugh CameronU.S. News ReporterShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.The United States national debt has now grown beyond the size of the country’s GDP, punctuating a long-running trajectory that has left budget hawks skittish, but Congress appears uninterested in countering.According to advance estimates released Thursday by the Bureau of Economic Analysis (BEA), America’s gross domestic product (GDP) totaled $31.22 trillion over the 12 months to March 31, now slightly under the $31.27 trillion in debt held by the country at the end of this quarter.It marks the first crossing of the 100 percent threshold—double the historical average—outside of wartime since…
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