National Debt Closes in on Post-World War II Mark

“The national debt will reach 99.9% of gross domestic product later this year and surpass its post-World War II high as a share of the economy by 2029, the Congressional Budget Office said Friday in updated projections,” the Wall Street Journal reports.

“Annual deficits will stay above 5% of GDP for the next decade, remaining at levels the U.S. normally doesn’t reach outside of wars, recessions and crises. The government’s cost to service that debt will continue to climb. Net interest expense, which already exceeds defense spending, will top $1 trillion in 2026. And by 2027, the government’s interest costs will be a larger share of the economy than at any point since at least 1940.”

“In reality, the fiscal picture may be even bleaker than the CBO forecast suggests. The official estimates assume that Congress enacts no new laws. That means the forecast for the next decade includes trillions of dollars in tax revenue that come from the expiration of the bulk of 2017 tax cuts at the end of 2025.”