The US economy is heading towards disaster as the vast national debt continues to mount, JPMorgan CEO Jamie Dimon said in an interview with Fox News earlier this week.
According to the chief executive of the nation’s largest bank, the situation urgently needs to be tackled by the government before it causes a major economic crisis.
“It is a cliff, we see the cliff,”Dimon said. “It’s about 10 years out, we’re going 60 miles an hour [toward it].”
The top executive agreed with the view of former House Speaker Paul Ryan, who has called the snowballing debt “the most predictable crisis we’ve ever had.” The warnings were issued by Ryan and Dimon during a panel discussion at the Bipartisan Policy Center on Friday.
US government federal debt topped $34 trillion for the first time in history at the end of December. It now amounts to about $102,000 for an average American family of three. In 2023 alone, it grew by more than $4 trillion.
US total public debt is roughly equivalent to the economies of China, Germany, Japan, India, and the UK combined, as pointed out by the Peter G. Peterson Foundation, a nonpartisan fiscal policy group in New York.
Earlier this week, US Treasury Secretary Janet Yellen said that the absolute level of US public debt looks like “a scary number.”
“So far, that [the public debt] has been quite manageable,” she said, calling for steps “to make sure that our deficits come down and remain at manageable levels.”
The huge amount is comprised of what the federal government owes to creditors, including individuals, such as citizens and foreign investors, as well as states or large funds. Washington continues to borrow money to cover a budget deficit that has been running for more than 20 years.
No major presidential candidates have a plan to tackle fiscal 'trainwreck' coming in 2025
- Presidential candidates don’t appear to have a plan to tackle pending fiscal crises they’d need to address early in their first, or second, term.
- Several provisions of the 2017 Tax Cut and Jobs Act are set to expire next year, the debt ceiling is likely to run out on Jan. 1 and an appropriations fight could dominate the early days of 2025, which one former Trump administration official has dubbed a fiscal “trainwreck.”
- “This stuff is actually like material to the purpose of governance, and nobody has given it any thought? No candidate appears to have given it any thought? No campaign appears to have given it any thought? It suggests that the candidates and the campaigns are not yet serious about governing,” Mike McKenna, former deputy assistant to the president, told the Daily Caller News Foundation.
Candidates vying for the White House in 2024 don’t appear to have a plan to tackle several pending fiscal crises that would need to be addressed shortly after taking office in early 2025.
The executive will likely be faced with issues related to expiring tax and debt law, as well as appropriations once they take their second, or first, term in 2024, which one former Trump administration official has dubbed a fiscal “trainwreck.” While the candidates have occasionally addressed each of these topics on the campaign trail, President Joe Biden, former President Donald Trump and former U.N. Ambassador Nikki Haley have yet to lay out plans to combat these specific issues if elected president in November.
Gov. Ron DeSantis’ campaign, which was suspended Sunday, also failed to provide a plan for the pending crises to the Daily Caller News Foundation.
Several provisions of the 2017 Tax Cut and Jobs Act (TCJA) are set to expire in 2025, the debt ceiling is likely to run out on Jan. 1 and a federal spending fight could ensue early next year if precedent holds, according to Mike McKenna, former deputy assistant to the president.
“This stuff is actually like material to the purpose of governance, and nobody has given it any thought? No candidate appears to have given it any thought? No campaign appears to have given it any thought? It suggests that the candidates and the campaigns are not yet serious about governing,” McKenna told the DCNF. “The modern campaign emphasizes the trivial over the material – this is a perfect example.”
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