The Atlantic | I Now Believe Our National Debt Is a Problem by Jared Bernstein
AI generated summary, Read the full article for complete information.
Jared Bernstein argues that the United States is now facing a genuine fiscal danger: public debt has swollen to roughly $31 trillion—about 100 % of GDP—and higher borrowing costs threaten to launch a self‑reinforcing “debt spiral.” While past growth rates outpaced interest on the debt, rising interest rates, larger deficits and the flood of new debt issuance mean that servicing costs are becoming the fastest‑growing part of the federal budget, pushing overall borrowing higher and raising rates for mortgages, auto loans and other credit. Bernstein attributes much of this trajectory to decades of politically driven tax cuts—first under Reagan, then under Bush and Trump—which have expanded the deficit without delivering the promised growth, and to a political climate where deficit spending is rewarded and fiscal restraint is penalized. He contends that sustainable borrowing must fund productive investments, not tax‑cut‑driven consumption, and calls for new revenue sources such as taxes on unrealized capital gains to address growing inequality and fund essential programs. Though the U.S. enjoys a unique advantage as the world’s reserve‑currency issuer, Bernstein warns that this leeway is limited; without a shift toward fiscal responsibility—stopping the “digging” that deepens the hole—the nation risks higher costs of living and a deteriorating economic outlook.
Read more:
https://www.theatlantic.com/ideas/2026/05/national-debt-problem/687257/?utm_source=feed
#Trump #StanfordInstitute #Treasury #US #NationalDebt
