Fynsa
As the effects of the U.S. election and Donald Trump's landslide victory wear off, one notable gap remains among the campaign promises: the federal debt, a burden that continues to grow unchecked. While both candidates focused on issues of immediate impact - inflation, taxes and jobs - neither addressed the debt issue with the seriousness it demands.
The U.S. debt has reached critical levels. Estimates by the Congressional Budget Office (CBO) are clear: if this continues, it will exceed $50 trillion dollars by 2034, which would represent more than 120% of GDP. This unbridled growth generates a negative spiral, as an increasing percentage of the federal budget goes only to interest payments, leaving fewer resources for priority needs such as education, infrastructure and health. In addition, interest rates have remained high, an effect that could intensify after Trump's victory, further worsening the cost of debt.
The Committee for a Responsible Federal Budget estimates that Trump's proposal will add trillions of dollars to the debt over the next decade, worsening the current fiscal situation. During his campaign, he sought to connect with voters through promises that have immediate impact, but do not address the underlying structural problem. Cutting benefits or raising taxes are unpopular measures, and most politicians prefer to avoid the issue.
While this election cycle did not prioritize debt, this issue is likely to become unavoidable in 2028, when it is projected to reach $45 trillion. By then, interest payments could consume up to 20% of tax revenues, forcing the country to face this reality and reduce its options.
Despite this, it is important to remember that the U.S. economy has shown remarkable resilience throughout its history, albeit in part because it has a monopoly on global currency issuance. Sooner or later, however, the debt issue will require a responsible and, why not say it, courageous approach.
