US Debt Tops 100% of GDP as Economists Call Milestone Largely Symbolic

1 articles · Updated · College of Social Sciences and Humanities · May 22

U.S. national debt has risen above the size of the economy, pushing the debt-to-GDP ratio past 100% in a milestone Northeastern economists said markets had already expected.
Bob Triest said the crossing was effectively "non-news" for investors because debt projections had long pointed to it, helping explain why stock indexes hit record highs after the headline.
Triest still called the trend concerning: the ratio is only inching up now, but forecasts show it continuing to rise over time.
That longer-term path matters more than the symbolic threshold because debt reflects the federal government's accumulated borrowing, while GDP measures one year's total output.

As debt interest outpaces economic growth, is the U.S. economy entering an inescapable debt spiral?

With U.S. credit ratings falling, is the dollar's dominance as the world's reserve currency at risk?

With debt interest now costing more than defense, what essential public services could face the biggest cuts?