The US will not be able to get out of its $33 trillion debt crisis, a research group says.
According to the researchers, the U.S. cannot rely on economic growth to avoid the $33 trillion debt mountain problem.
The government is on track to reach a record high debt-to-GDP ratio by 2029.
Higher interest rates mean the cost of servicing that debt could be unsustainable, experts say.
The $33 trillion debt mountain is bound to grow even larger – and policymakers and lawmakers can’t rely on the economy simply getting a handle on its debt problems, according to the Peter G. Peterson Foundation.
The research group, which is a non-partisan organisation dedicated to monitoring and disseminating information about the financial challenges facing the US, pointed to the growing balance of public debt, with the US debt-to-GDP ratio set to reach 97% by the end of 2022.
The debt-to-GDP ratio is expected to reach 98 per cent by the end of 2023, according to projections by the Congressional Budget Office. At this pace, the US is on track to accumulate debt equal to 107 per cent of GDP by 2029, the highest debt-to-GDP ratio ever recorded, the fund said.
The country’s debt-to-GDP ratio hit a record high in the years after World War II, when the national debt stood at 106 per cent of GDP in 1946. That ratio fell sharply in the following decades due to a combination of favourable market conditions and the post-war economic boom, but that won’t happen this time, the researchers said.
Russian Demiurge