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By Bruno COLMANT, Ph.D., Member of the Belgian Royal Academy
U.S. public debt now exceeds $39 trillion. It is no longer merely one budget imbalance among many; it is becoming the organizing principle of U.S. economic policy as a whole. The United States is no longer borrowing to get through a recession, finance an exceptional war, or respond to a pandemic. It is borrowing continuously, even when the economy is growing and unemployment remains low.
The federal deficit is expected to reach another $1.9 trillion in 2026, or nearly 6% of GDP. At this pace, public debt could rise to 120% of GDP by the middle of the next decade. Donald Trump will never seriously tackle these deficits. His policy rests on a fundamental contradiction: he...
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