Interest on the national debt is eating a record 19% of federal revenue
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I am glad he is complaining about it. Again, for the cheap seats, Trump has pushed tarrifs, pushback from karen, Trump created doge, pushback from karen, Trump is trying to get rid of federal fundin
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The truth is all I need. Sad that you have to live in fantasy land.
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Good point, I’ll add more. Good news, looks like he’s helping you out with the adove post. 😉
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According to the Committee for a Responsible Federal Budget (CRFB), interest costs consumed a record 3.25% of GDP and roughly 19% of all federal revenue in fiscal year 2025. If Treasury yields remain elevated at current levels — roughly 55 basis points above Congressional Budget Office projections across the yield curve — interest costs would grow 2.5-fold, climbing from $880 billion today to $2.5 trillion by 2036. That would push debt interest’s share of federal revenue to almost 30% — nearly triple its historical average over the past half-century.
The numbers are staggering in their own right. But CRFB warns the real danger lies in the mechanics behind them. When the average interest rate on the national debt exceeds the economic growth rate — what economists call r>g — debt can begin rising rapidly and uncontrollably. Under the elevated-rate scenario, that gap would reach 75 basis points by 2036, making it increasingly difficult for even responsible fiscal policy to stop the spiral. The combination of high debt levels and a large gap between r and g can lead to a debt spiral — where rising interest costs boost debt, rising debt boosts interest rates, and rising rates boost interest costs further.
By 2027, under the high-rate scenario, interest costs would overtake Medicare spending to become the second-largest government program — eclipsed only by Social Security. By 2036, the government would be spending nearly as much on interest as on Social Security’s entire retirement program.
CRFB’s prescription is blunt: lawmakers must work to bring interest rates down and prevent high rates from crowding out other priorities or sparking a fiscal crisis. The most effective lever, the group argues, is deficit reduction — which can ease near-term inflationary pressure, take downward pressure off long-term yields by reducing economic crowding-out, and shrink the debt stock on which the government pays interest. “With debt approaching record levels,” CRFB writes, “there is little time to lose”.
Fortune
Interest on the national debt is eating a record 19% of f...
@Pete
we all realize the Democrats aren't going to do anything about the debt. the Republicans had an opportunity to do something but blew it and are just allowing more debt to be piled on.
what a shame...