The US national debt is at $38 trillion, and Washington is “unaware of our dysfunction,” the Budget Committee warned.

Experts in various sectors of the economy have been warning for years that America’s financial path is not stable. They do not refer to the amount of debt, but rather to the levels the United States adds to its debt obligations in relation to how fast its economy is growing, known as the debt-to-GDP ratio. Currently, this balance is about 125% according to Treasury Department data, but is expected to reach 156% by 2055. According to the Congressional Budget Office.

Moreover, economists and policy advisers are concerned about the approach politicians have taken to the national debt, saying Washington is not pulling back its spending enough to begin rebalancing its books.

Even for the world’s largest economy, the mountain of debt that America has accumulated is eye-watering. The problem is not the $38 trillion itself. In fact, trading in government debt is the basis of the bond market, one of the pillars of the global economy. Rather, it is the interest that is paid for its service. As of September, the United States had spent $1.21 trillion on debt maintenance, 17% of the total. Federal spending In fiscal year 2025. The interest rate is also increasing over time. Just two years ago, in 2021, the reimbursement rate by the US government was, on average, 1.61%. Now it is 3.36%.

Proverbs JPMorgan CEO Jamie Dimon, Bridgewater Associates founder Ray Dalio and Citadel CEO Ken Griffin They have all sounded the alarm from the private sector about government debt, and public committees are stepping up their warnings on Capitol Hill about the future of America’s finances.

In a joint statement with luck“It’s hard to pinpoint the scariest part of this announcement from the Treasury Department: that we have crossed an unprecedented $38 trillion in total national debt; that we will likely reach the next milestone in just months; or that we are receiving this news in the middle of a government shutdown with no end in sight,” said Maya McGuinius, chair of the nonpartisan Committee for a Responsible Federal Budget (CRFB). It seems”.

“The truth is that we have become disturbingly numb to our own dysfunction,” McGuinius added. “Policymakers have a choice: they can continue to abdicate basic budgeting responsibilities, or they can finally confront the deteriorating fiscal situation before it is too late.”

McGuinius was echoed by Michael Peterson, CEO of the Peterson Foundation, which works to raise awareness of fiscal responsibility, saying: “Adding trillion after trillion to debt and budgeting for every crisis is not the best way for a great nation like America to manage its finances. Instead of allowing the debt clock to tick higher and higher, lawmakers should take advantage of the reforms.” “The many officials who will put our nation on a stronger path for the future.”

Proposals for dealing with debts

Republican and Democratic administrations increased borrowing.

The Trump administration has demonstrated awareness of this issue and a willingness to address it. In fact, Dalio said he saw “Greater awareness” of the current administration About the risks of the financial environment in America.

According to the Congressional Budget Office (CBO), President Trump’s Big Beautiful Act (OBBBA) will add $3.4 trillion to the national debt by 2034. That number is net of a decrease in spending of $1.1 trillion and a decrease in revenue of $4.5 trillion. The White House has repeatedly claimed that the revenue expected to be generated by tariffs, which the Congressional Budget Office estimates at $3.3 trillion over the next decade, will actually balance the books.

Trump has proposed some unusual methods to rebalance the books. For example, Trump promotes the “golden cards” plan A visa policy that would charge wealthy immigrants $5 million for a green card “plus a path to citizenship.”

“One million cards would be worth $5 trillion, and if you sold 10 million cards, it would be $50 trillion total. Well, we have $35 trillion in debt, so that would be good,” Trump said.

He pointed out that he would have $15 trillion “surplus” if he could sell 10 million cards, adding: “It may be intended to reduce the deficit, but in reality it may be more money than that.” Although the calculations do not necessarily agree (the majority of millionaires already live in the United States, and it may be difficult to recruit a number of foreigners with net worth of at least $5 million), they nonetheless indicate a willingness to begin addressing the issue.

Indeed, while Trump’s tariff plans have proven unpopular with foreign governments, economists nonetheless welcome the “weird” methods of increasing American income. As Wharton professor João Gomez previously said luck: “You also can’t deny that (Trump and his administration) are bringing in strange forms of revenue that are changing the debt picture.”