More than 85% of Americans are deeply concerned about the serious impact the growing national debt may have on their future, according to a new study.
What happened: A survey of John Zogby Strategies for non-profit organization Main Street Economy measured the awareness and fears of about 1,000 voters. The findings come as the US government faces a possible shutdown if lawmakers cannot agree on a spending package.
The findings underscore widespread anxiety that transcends current economic conditions and cast a troubling outlook for years to come.
Some 59% of respondents believe Washington policymakers are not making enough efforts to address the debt crisis. Many of these respondents are significantly more inclined to call to action, driven by their awareness that:
- A prolonged default on the national debt could trigger a harsh recession, eliminate eight million jobs, shrink the economy by more than six percent or have even more serious consequences (45%).
- The government is projected to incur an additional $20 trillion in debt over the next decade, with the potential to reach $100 trillion over the next 30 years (41%).
- In 2023 alone, interest payments exceeded $1 trillion due to rising interest rates and growing debt (40%).
Graphic: Government interest payments top $1 trillion as rates weigh on debt
The call to action
The Rubinsfounder and CEO of Main Street Economics, warns that if politicians continue to prioritize their re-election over addressing the debt problem, this will lead to reduced funding for essential public services.
“The country will continue to deepen the financial hole,” he said.
“While these data are alarming, they are not. At some point the national debt bomb will explode unless we, united, raise our voices to our representatives and demand that they make meaningful decisions to ensure that future generations do not pay the unfortunate price of our country's debt. current financial debacle,” Rubin added.
Other economists are also nervous. Olivier Blanchardthe former chief economist of the International Monetary Fundrecently expressed serious concern about the likelihood of a fiscal emergency in the US.
He pointed to the danger to the nation's debt, which has ballooned to more than 120% of its GDP, along with a political atmosphere that appears unwilling to address these issues.
And yet, Jonathan Gruber —chairman of the economics department at MIT— said Boston Public Radio in December that the debt conversation needs context.
To reduce the deficit, Gruber says a good first step is to control inflation.
“I understand prices are high, but inflation, which is how quickly prices rise, is back to where it was,” Gruber said. “Prices are no longer rising rapidly.”
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