May 30, 2024 Opinion How National Debt Could Shape Our Economic Future

It is May 30, 2024 and the rising national debt poses a significant threat to the future growth of The recent Congressional Budget Office (CBO) report highlights the impact of the national debt on Americans' income. According to the report, if the national debt continues to increase without control, it will slow economic growth and lead to a reduction in household income growth over the next few decades.

Currently, the CBO estimates that the gross national product (GNP) per person, which serves as a measure of average income, is approximately $84,400. If the national debt remains stable at 99% of the gross domestic product (GDP), the average income is projected to rise to $128,600 by 2054, adjusted for inflation. However, if the debt grows to 166% of GDP by 2054 as per the CBO's current law baseline, income growth would slow significantly, reaching only about $123,200 per person. In a more severe scenario with higher spending and lower tax revenue, the debt could reach 294% of GDP, causing income growth to drop to approximately $114,100.