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Charting America's $27 Trillion Debt Thumbnail

Charting America's $27 Trillion Debt

Since the global financial crisis of 2008, America's national debt has grown at a rate often faster than GDP. With recent pandemic relief measures, such as the $2T CARES Act which went into effect at the end of March 2020, the national debt surpassed GDP by nearly 18%.

Is this cause for concern?

Public sector debt has been a contentious topic for years and there's really two schools of thought.

On one hand, some believe government borrowing is a powerful tool for stimulating growth. Additionally, this group points out that current U.S. debt payments are manageable and the post-pandemic economic outlook is strong.

But on the other hand are those who believe excessive government borrowing may be harmful over the long term. This perspective says potential higher interest rates in the future, could divert government funds from certain discretionary spending categories including transportation, defense, healthcare and education.

There's probably truth in both perspectives. And with the national debt still rising, this likely will remain a topic of discussion well into the future.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.