Richard Haass, the president of the Council on Foreign Relations, and other economists have sounded the alarm about the U.S. national debt, stating that it poses a significant threat to the country’s security and global standing.
Top Economists Weigh In On Mounting Debt
Haass highlighted the potential dangers posed by the $38 trillion national debt. In an exclusive interview with Fortune, he warned that this could lead to a “national security crisis,” with the debt already impacting the country’s ability to allocate resources effectively.
Haass outlined two potential scenarios: the first one, a dramatic “cliff” scenario triggered by a failed Treasury auction or geopolitical coercion, and a quieter but still dangerous second scenario where the debt continues to rise, squeezing defense budgets and weakening U.S. leverage abroad.
On the other hand, top economist and Berkeley professor, Barry Eichengreen has a different take on the American debt crisis. According to him, America’s $38 trillion debt stems less from economics and more from extreme political polarization. In a Fortune interview, he argued that “Neither party is serious” about trimming the budget deficit and that both parties have abandoned fiscal discipline, offering rhetoric instead of real action.
See Also: Jeff Bezos’ Blue Origin Finally Gets A Big Win With New Glenn — And SpaceX CEO Elon Musk Couldn’t Help But Applaud
Musk Touts Tech Growth, Trump Plans Tariff-Funded Debt Fix
The U.S. national debt has been a cause for concern for some time. In September, billionaire investor Ray Dalio predicted a “debt-induced economic heart-attack” within three years, likening the U.S. deficit to a lifetime of overeating fatty foods and smoking.
By October, the U.S. national debt had surpassed $38 trillion, raising concerns about the nation’s financial stability. This was the fastest trillion-dollar increase in debt outside of the COVID-19 pandemic.
As the national debt continues to rise, experts are increasingly warning of the potential consequences for the U.S. economy and global standing. Meanwhile, billionaire Elon Musk have endorsed a technology-fueled growth led by AI and robotics as the “only way” forward to manage the mounting debt. At the same time, President Donald Trump has stated that he wishes to use the tariff revenue and trade investment money to address the fiscal issues.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.