Peterson Foundation Warns U.S. Debt Could Cut 1.2 Million Jobs by 2035, Squeeze Gen Z Wages
Updated
Updated · Fortune · Jul 14
Peterson Foundation Warns U.S. Debt Could Cut 1.2 Million Jobs by 2035, Squeeze Gen Z Wages
2 articles · Updated · Fortune · Jul 14
Summary
A Peterson Foundation report says Gen Z faces a smaller U.S. job market and lower take-home pay if the national debt keeps rising, with EY estimating 1.2 million fewer jobs by 2035 versus a stabilized-debt path.
EY’s analysis ties the damage to rising interest costs that crowd out public investment and deter private business spending, slowing growth and weakening labor demand.
The projected gap widens over time to 2.7 million jobs by 2055 and 3.6 million by 2075, while annual wages fall 0.6% by 2035, 3% by 2055 and 5.3% by 2075.
CBO data underscore the pressure: net interest on public debt reached $857 billion for the fiscal year, or about $23.8 billion a week.
The foundation urged younger Americans to press policymakers for fiscal action, arguing today’s debt decisions will shape the next generation’s economic prospects.
As national debt soars, are younger generations being set up for inevitable economic decline?
With AI boosting productivity, are warnings of a U.S. debt crisis simply overblown?
Could skilled immigration truly be the key to defusing America's ticking debt bomb?
The $34 Trillion Threat: How America’s National Debt Endangers Gen Z’s Economic Future and What Can Be Done
Overview
This report highlights how the escalating national debt poses a significant and immediate threat to Gen Z’s economic future. As the debt rises unsustainably, it leads to real-life challenges like higher costs of living and downward pressure on wages. The government’s increased borrowing crowds out private investment, making it harder for businesses to grow and pay higher wages. These effects ripple through daily life, from more expensive mortgage payments to reduced financial stability for young people. The report connects these trends to broader societal impacts, showing that without action, Gen Z faces a more uncertain and financially strained future.