Hot Seat: Growing national debt and its threat to U.S. stability

In this edition of the Hot Seat, Mike Murphy from the Committee for Responsible Budget Policy discusses the United States' national debt surpassing $36 trillion, and why experts believe this fiscal trajectory poses a serious threat to the nation’s stability.

The Growing Debt Crisis

The United States' national debt has surged past $36 trillion, a figure that senior financial experts say threatens national security and economic stability. Despite the gravity of the situation, both policymakers and the public appear disengaged from the issue, said Mike Murphy, Senior Vice President and Chief of Staff for the Committee for Responsible Federal Budget.

"Our debt right now, as a percentage of our economy, is almost at 100%. It's almost the entire size of our economy. It's growing faster than our economy," said Murphy.

The organization, founded in the 1980s, advocates for fiscal responsibility and sustainable federal budgeting practices.

What the Debt Means

Murphy explained the difference between deficits and debt, terms that are often used interchangeably.

"What a deficit is...simply the difference between spending and revenues," he said. "It's the gap between how much the government is spending versus how much the government takes in."

"Debt can be thought of as the accumulation of all those deficits over time," said Murphy.

The interest alone on the national debt now approaches $1 trillion annually, Murphy said. “We’re spending more on that (interest) than on national defense...that is unsustainable.”

Policy Challenges in Congress

Murphy outlined two pressing issues before Congress: the debt limit and budget reconciliation.

1. Debt Limit: Congress must raise the debt ceiling by this summer to avoid defaulting on financial obligations. Failure to act could have catastrophic economic consequences.
2. Budget Reconciliation: This process, which allows certain budget-related legislation to pass the Senate with a simple majority, will likely be used to address spending and revenue measures.

Engaging the Public

Murphy encouraged citizens to pressure their representatives to prioritize fiscal responsibility.

For those seeking reliable, nonpartisan data, Murphy recommended visiting the Committee for Responsible Federal Budget’s website at crfb.org or consulting reports from the Congressional Budget Office.