this post was submitted on 05 Jul 2025
92 points (97.9% liked)

Economics

892 readers
187 users here now

founded 2 years ago
 

As Donald Trump cheered the passage of his self-styled, and officially named, Big Beautiful Budget Bill through Congress this week, long-sown seeds of doubt about the scale and sustainability of US borrowing from the rest of the world sprouted anew.

Trump's tax-cutting budget bill is expected to add at least $3 trillion (£2.2 trillion) to the US's already eye-watering $37tn (£27tn) debt pile. There is no shortage of critics of the plan, not least Trump's former ally Elon Musk, who has called it a "disgusting abomination".

The growing debt pile leaves some to wonder whether there is a limit to how much the rest of the world will lend Uncle Sam.

you are viewing a single comment's thread
view the rest of the comments
[–] humanspiral@lemmy.ca 3 points 14 hours ago* (last edited 14 hours ago)

The $3.4T deficit increase projection, $340B/year is on top of the $1.9T projected deficit for 2025 prior to bill. The projected deficit for FY2035 is $2.7T. This is before golden dome, and other warmongering/Israel funding. 2025 and 2035 numbers are both about 6.1% of GDP.

GOP talking points have include the fantasy of growing at 3% (instead of 1.9%) annually to pay for the $340B/year increase, but at 6.1% deficit/GDP ratio, total debt increases as long as nominal GDP doesn't grow above 6.1%. Cutting healthcare, and population through deportations won't cause growth.