Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the national debt held by the public reaching 100% of gross domestic product (GDP). Peterson said:

“Once again, America has hit an alarming fiscal milestone that highlights our dangerous and unsustainable outlook.  The national debt is now as large as our entire economy, which should serve as both a disturbing warning and a call to action.   

“Soon, we will eclipse the all-time high of debt to GDP, set just after World War II.  The critical difference between 1946 and 2026 is that today’s deficits are not caused by a war, but by a structural, growing mismatch between spending and revenue.  Instead of the rapid fiscal improvement after the war, today’s outlook reflects a steep upward debt path in the decades ahead. 

“American families and businesses are feeling the pain of our growing debt because the debt puts upward pressure on inflation and interest costs.  Affordability is a key issue this election season, and strong majorities of voters are ready to support candidates across party lines who have a plan to put our nation on a sustainable path.

“Despite this latest unfortunate fiscal milestone, there are many solutions available to improve affordability and build a brighter future.”