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Why It Matters

Who’s Afraid of the National Debt?

Why It Matters

Council on Foreign Relations

News

4.2876 Ratings

🗓️ 3 October 2024

⏱️ 30 minutes

🧾️ Download transcript

Summary

The United States national debt is rising to levels not seen since World War II. Many economists say Washington is on an unsustainable track, but no one knows when it will pass the point of crisis. What is at risk if U.S. debt continues to grow?   Featured Guests: Maya MacGuineas (President of the Committee for a Responsible Federal Budget) Roger W. Ferguson Jr. (Steven A. Tananbaum Distinguished Fellow for International Economics, CFR)   For an episode transcript and show notes, visit us at: https://www.cfr.org/podcasts/wim/whos-afraid-national-debt

Transcript

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0:00.0

When is it a good time to talk about the US federal debt?

0:07.0

Some of you may be shouting never at your phone or computer.

0:11.0

But the problem is really big, and in some ways it's out of

0:15.3

control. In fact, just the interest the U.S. pays on this debt per year is more

0:21.6

than what the government spends on defense annually.

0:25.0

And since we have an election just around the corner,

0:28.0

now might be a good time to seriously talk about it,

0:31.0

because neither of our presidential candidates are.

0:34.0

The soaring national debt used to be a recurring concern in Washington,

0:38.0

particularly among Republicans.

0:40.0

But for more than a decade, it simply hasn't been a priority for either party, which is concerning,

0:47.0

because our debt is now approaching World War II levels and is still on a runaway trajectory.

0:54.0

Some experts think our debt has grown so large as to become a national security threat.

1:00.0

While others might say, hey, we still have a healthy growing economy, so does it even matter?

1:06.0

I hopped on a call with two superstars in the field to figure it all out.

1:10.6

I'm Gabriel Sierra, and this is why it matters. Today let's talk about debt.

1:17.0

I'm trying to light these glasses.

1:24.0

Thank you.

1:25.0

I do too.

1:26.0

That's my official look.

1:28.0

They're cool.

1:29.0

All right, so how big is that bill?

...

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