Core Viewpoint - The article discusses the increasing severity of the U.S. budget deficit and its potential to lead to a debt crisis, particularly highlighting the issues surrounding student loans and government spending [1][5][11]. Group 1: Budget Deficit and Debt Crisis - Jared Bernstein, former chair of the Council of Economic Advisers, has shifted from a "dove" to a "hawk" stance on budget deficits, acknowledging that the situation has worsened [2][3]. - Bernstein emphasizes the relationship between economic growth and debt interest rates, citing that if GDP growth exceeds debt interest rates, the government can sustain budget deficits [3][6]. - The number of Americans with federal student loan debt has increased from 21 million to 45 million between 2000 and 2020, with total debt rising from $387 billion to $1.8 trillion, indicating a significant growth in financial burden [5][12]. Group 2: Government Spending and Economic Policies - Bernstein notes that the cost of U.S. debt has historically not been burdensome, but recent changes have led to a convergence of debt costs and economic growth rates, raising concerns about debt sustainability [6][7]. - The article mentions that the Biden administration's spending has contributed to a substantial increase in debt, although Bernstein does not directly address this issue [8][12]. - Bernstein suggests that Congress should establish "red lines" and mandatory fiscal responses to prevent a debt crisis, as interest payments on debt are projected to exceed spending on Medicare and defense [11]. Group 3: Future Projections and Economic Impact - Goldman Sachs reports that the current budget deficit is unsustainable, with the debt-to-GDP ratio nearing post-World War II highs, and the trajectory of debt and interest payments as a percentage of GDP is expected to steepen [13][12]. - The article highlights that Trump's tax cuts and spending policies are anticipated to result in trillions of dollars in additional deficits over the coming years [12].