The U.S. national debt is currently history-high at $28.9 trillion, and the debt-to-GDP ratio at 123% is alarming. However, the current Biden administration plans to add more debt with a $6 trillion proposal which would increase the debt-to-GDP ratio to a level higher than that of World War II time. The national debt has been an inherent component of the U.S. economy, and the piling debt has divided the nation with popular debates. Influenced by Keynesian economics, which proposes increased government spending and lower taxes as the solution during an economic depression, some argue that the U.S. national debt is not a concern, as the government expenditure would yield more benefits to the economy. On the other hand, many oppose this claim, arguing that the mounting national debt is a serious concern and that it should be reduced as soon as possible.

The national debt, in itself, has clear negative consequences. Many experts warn that deficits can lead to extended recessions, rising interest rates, inflation, reduced upward mobility, stock market failure, and general economic and social catastrophe. In the 2014 “Long-Term Budget Outlook,” the Congressional Budget Office (CBO) corroborates these claims by stating that growing federal debt results in an inability to respond to problems and a higher risk of fiscal crisis. 

Throughout American history, debt and debt-to-GDP have always displayed an increasing trend. The numbers have been highest between 1986 and 1996, when President Ronald Reagan’s tax cuts, the Black Monday market crash, and war involvement in Iraq struck all at once. In these 10 years, the national debt nearly tripled and the ratio increased from 46% to 64%, threatening the stability of the economy. Though debt levels returned to normal under the Clinton administration through decreased military spending and increased taxes, concerning debt-to-GDP ratios resurfaced since 2001. Currently, the debt level is at its peak, and the nation is witnessing an unprecedented economic status.

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