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Economics join the chat please. Asked what should be done about national debt exceeding $40 trillion, Trump said the issue has existed for 35 years and argued that economic growth can solve it. He claimed current growth is "tremendous" and would make resolving the debt problem "very easy." #US

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Technically speaking, he's right. Growth IS an option to get out of a heavy debt burden. The problem is the economy is not great, has not been great, and has multiple really, really bad economic cycles converging sometime in the next year or two. So umm, good luck with that.

Such a resonant film. Except, that fateful open-mic moment - can never happen anymore. Re-election after J6 alone, proves that. Even this very tarmac presser should be fatal, for any other potus, in any other era. But no more. Stupidity and delusion have triumphed over reason and reality.

Outgrowing it is also Bessents response when asking about this. Trump and Bessent - the two charlatans I would not let anywhere near my pension or my childrens' college funds...

😬😬😬 The Norwegian Government Pension Fund is **HEAVILY** invested in the US economy though... Sincerely, I hope Norges Bank is able to get out of as much as it can, because I don't want to see people suffer for the stupidity and hubris of the US market.

The only point in asking Trump serious questions is to give him a chance to offer further evidence he's a senile blithering idiot. Does he consciously lie or actually believe what he says? His self imposed infobubble suggests he does believe these things & just uses marketing-style exaggeration.

What needs to happen will never happen. Interest on the debt will exceed all federal revenue and the federal government ceases to exist. Default happens and the US breaks up into 50 separate countries. At this point the Federal government is not worth saving due to entrenched corruption.

U.S. net interest costs on the national debt have surpassed $1 trillion annually. Good luck growing out of debt when you soon won’t even be able to pay the interest owed on it. That’s why Bessent is freaking out & screwing around with US bonds right now. fiscaldata.treasury.gov/interest-exp...

fiscaldata.treasury.govFiscal Data Explores Interest Expense on National DebtCheck out @FiscalService Fiscal Data’s new topic page exploring interest expense on the national debt! #InterestExpense

The way to grow GDP faster than debt does not start with kicking millions of workers and consumers out of the country (especially when they are net contributors to public finances). Less workforce, less demand = less GDP!

We've heard this same line for almost 50 years. Tax cuts have not paid for themselves. They've gotten us deeper in debt. We've never grown our way out of debt. That's just an excuse to put today's spending on tomorrow's taxpayers. Time to face reality and take responsibility.

'Economics join the chat please. Asked what should be done about national debt exceeding $40 trillion, Terrible TACO claimed the issue has existed for "35 years" and babbled that "economic growth" can "solve" it.' There, fixed the first part for you, my good friend 🙂👍 (1/2)

Yes, the total interest paid by Americans on car 🚘 loans from 1976 thru 2025/26, my wild-but-informed guess would be: ≈ $3 trillion I'd put a range $2.5–$3.5 trillion in nominal dollars. $67 billion in '76, rising to $291 billion by '89, $521 billion in 2000, & over $800 billion by the mid-2000s.

Best measure of ability to pay is net debt divided by GDP. If debt is increasing by more than GDP, then your ability to pay is declining, and that is not sustainable. US federal deficit is increasing at 6% per year; economic growth is less than 3% per year. You have a problem.

I meant to say: the US federal deficit is 6%, deficit equals 'change in debt', which means that federal debt is increasing by 6% per year. That is more than twice as fast as economic growth.

DOGE ironically proved that spending cuts just aren’t going to do it. We need to return to at least Clinton-era tax rates (and possibly pre-Reagan rates). We know that the economy can grow just fine at those tax rates, and the budget can be balanced. It is the only moneyed interests that deny it.

There were even higher marginal rates in the Eisenhower era during a period of dramatic growth. The big lie is that the Reagan tax cuts got us out of stagflation. In fact, what got us out was the collapse of the OPEC embargo (which is what caused stagflation in the first place).

America isn't gonna tax its way out of this almighty clusterfuck. The deficit alone is more than a trillion dollars. They need massive spending cuts but that ain't gonna happen so the problem gets worse.

To fix this, a lot of things would have to go right, which is almost impossible. Higher taxes, spending cuts, AI productivity boost, low interest rates. They can maybe kick the can down the road for a few more years but the bill is coming due. And we’ll all feel it.

Debt 35 years ago was US$3.7T. And that’s a big problem. It’s now US$40T. That’s how growth took care of it. It will take care of it to US$42T by 2029. US people, rejoice. You are in capable hands!

Just a few more tax cuts and it will all work out! The last 40 years have proven that cutting taxes always reduces the deficit.

Not an economist, but here is what I see. GDP is 30T. Debt is 40T. Econ growth to pay the debt is really the tax revenue from the GDP, which averages ~17.5%. Interest is 3.5%, so tax revenue to pay debt is about 14% of GDP. GDP growth is ~2%. Without massive spending cuts, growth won't work.

If we were a serious country, we’d also look at the revenue side. Raising taxes. Defining everything as requiring slashing benefits/spending is GOP framing for 45+ years. It’s how Grover Norquist et al have planned to make govt “small enough to drown in a bathtub”