The majority of Americans are concerned about the economy and want lawmakers to address the mounting debt, but the deficit ratio to GDP growth is on track to surpass WWII levels
The U.S. debt-to-GDP ratio is surpassing the record levels from during World War II(Image: Getty Images)
As we head further into 2026, most Americans continue to hold negative views of the U.S. economy, a consensus that appears to hold across the political divide.
The country’s fiscal burden continues to climb after it skyrocketed to $38 trillion in October of last year, and the debt is increasing $6.17 billion per day, according to the U.S. Joint Economic Committee’s Monthly Debt Update. When debt hit $38 trillion, the committee projected that the country’s debt would hit $39 trillion by approximately March 6, 2026.
Over the past two decades, U.S. borrowing has been uninterrupted, and an analysis reveals that the current U.S. national debt, as a share of the economy, has surpassed that of World War II.
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The Committee for a Responsible Federal Budget, a nonpartisan, nonprofit fiscal policy organization, released an analysis highlighting that the country’s national debt as a share of Gross Domestic Product (GDP) will surpass the record 106% set just after World War II. It will continue to climb to 122% by 2036 and 148% by 2050.
This stark ratio of the U.S. owing more in debt than it produces in goods and services in a year is a growing concern regarding the nation’s financial health. Since the beginning of the fiscal year 2026 in October, the U.S. Treasury confirmed that the government has already spent $602 billion more than it has collected, adding to the national debt.
Researchers have questioned whether the debt accrued during WWII will ever be resolved, despite the debt-to-GDP ratio decreasing substantially to 23% in 1974 following the war. The CEPR found that the U.S. shouldn’t count on economic growth to fix the nation’s ballooning debt problem, which could potentially become unsustainable.
The federal deficit hit $38 trillion last year(Image: Getty Images)
Why are high debt levels bad for the U.S.?
Since the country’s inception, it has carried debt and has yet to stall. The U.S. took on $75 million in debt from the American Revolutionary War, according to the U.S. Treasury.
The largest spending categories for the country are for items and services purchased by the federal government, including income security, Social Security, health care services, national defense, and Medicare.
The recent events that have caused the country’s debt to spike include the Afghanistan and Iraq Wars, the 2008 Great Recession, and the COVID-19 pandemic. The Treasury reported that spending increased by 50% during fiscal years 2019 through 2021, largely due to the pandemic.
“Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt,” the Treasury reported.
Can the national debt be fixed?
The main question rattling both U.S. lawmakers and Americans is whether the national debt can be fixed.
New data released last week by the Peter G. Peterson Foundation shows that 72% of Democrats and 87% of Republicans believe that lawmakers should spend more time addressing the debt.
As the national debt is growing faster than ever, some lawmakers are trying to create fiscal goals. For instance, in January, Bipartisan Fiscal Forum co-chairs Representatives Bill Huizenga (R-MI) and Scott Peters (D-CA), along with others, introduced the “3% Resolution,” which aims at reducing the federal deficit to 3% of GDP or lower.
President Donald Trump has repeatedly suggested that his tariffs will lower the federal deficit, as well as offer $2,000 dividends, but experts warn the policy isn’t bringing enough money in.
In a cabinet meeting last year, the president said, “We’re going to be giving back refunds out of the tariffs because we’ve taken in literally trillions of dollars… We’re going to be giving a nice dividend to the people in addition to reducing the debt.”
However, according to the Tax Foundation, to send out the $2,000 checks would cost significantly more than his tariffs generate, between $279.8 billion and $606.8 billion.
The national debt exceeds $38 trillion, and the federal government ran a deficit of $1.8 trillion in fiscal year 2025. For both the $2,000 tariff rebates and the debt reduction, Trump would need an act of Congress, which hasn’t happened yet.
However, it is unclear whether these efforts will be a long-term dent into reducing the federal deficit to a manageable level.
