Peterson Foundation Statement as Deficit Soars

Oct 20, 2023

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today as the Treasury Department announced the fiscal year 2023 deficit. Peterson said:

“The deficit has essentially doubled in just one year. That’s very alarming, but the fact that the deficit grew so much during a time of economic growth is an even more serious warning sign for our nation’s future.

“We are seeing in real time the painful combination of rising debt, inflation and interest costs, all leading to even more debt. Interest costs rose almost 40% last year, and soon we’ll spend more on interest than we do on national defense.

“Piling on so much debt is unfair to the next generation, and it harms our economy, makes us vulnerable to crises, and diminishes our global leadership. We must avoid a government shutdown, but lawmakers should move beyond short-term political fights to focus on the significant threats to our future posed by our growing debt.

“Large majorities of voters want Congress to focus more on this serious challenge, and support the creation of a bipartisan fiscal commission to recommend solutions. A commission would enable lawmakers to evaluate comprehensive spending and revenue options that can put us on a much stronger path for the nation’s future.”

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