When Does US Debt Become Genuinely Bad? | WSJ

US National Debt Concerns - The US national debt is reaching levels comparable to World War II as a percentage of GDP, raising concerns about its sustainability [4][5] - The national debt affects basically everything in our economic lives [10] - The US has been running a budget deficit for 20 years, with the 2020s' deficit at $18 trillion [4] - The US is borrowing to pay the interest on the previous debt [11] Economic Impact - High national debt diverts investors' money from productive investments, hindering economic growth and potentially reducing incomes per person by nearly 7% by 2050 [8][9] - Increased interest rates due to rising debt can add $300 billion in borrowing a year and ripple through the entire economy, affecting mortgages and corporate bonds [12][18] - If publicly held debt exceeds 175% of GDP, it could lead to economic hardship, and 200% is considered a critical limit, potentially triggering a Greek-Portugal meltdown scenario [12][13] Potential Solutions - Experts suggest that Congress needs to reduce spending, increase tax revenue, honestly fix social security, make changes to welfare programs, look at how defense procurement programs work, put discretionary spending caps on, and raise taxes [21][22] - A grand bargain is needed where everything is on the table [22]