US EditionInside Economics: How much Government debt is too much?
- On Tuesday, Treasury Secretary Scott Bessent described the U.S. National debt of $36.2 trillion as "scary" during his remarks to a Congressional panel.
- Bessent and others explained that debt sustainability is hard to determine, but the debt-to-GDP ratio, currently about 123%, is more important than the debt amount alone.
- Congress has run deficits every year since 2001, with both parties responsible, while experts warn that mounting debt poses risks like slower growth and higher interest payments.
- The Congressional Budget Office sees no clear crisis threshold for the debt ratio, and models estimate default risk would need ratios near 160-200% of GDP, indicating the U.S. Is not yet at a tipping point.
- Officials agree spending controls combined with growth are needed to improve fiscal health, while Congress traditionally raises the debt ceiling to meet obligations and avoid default.
14 Articles
14 Articles
Trade Negotiations and Debt Limit: Takeaways From Bessent’s Testimony to Congress
Treasury Secretary Scott Bessent appeared before the House Appropriations Committee on May 6, talking to lawmakers about a wide range of issues, from tariffs to the debt ceiling. Bessent touted President Donald Trump’s economic agenda of deregulation, tax cuts, and trade changes. “These are not standalone policies. They are interlocking parts of an engine designed to drive economic growth and domestic manufacturing,” Bessent said in his opening …
How much debt is too much? Bessent says its difficult to pinpoint
(The Center Square) – Treasury Secretary Scott Bessent told a Congressional committee Tuesday that it's hard to say how much debt the nation can carry, but said the U.S. won't default on its obligations and spending constraints tied with growth…
Bessent Says US on Debt-Limit ‘Warning Track,’ But No Timing Yet
Treasury Secretary Scott Bessent repeated his warning that his department is on the “warning track” toward exhausting its capacity to stay within the federal debt limit, while refraining from offering a specific timeframe on Tuesday.
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