Source: Fortune.com
Summary
The Congressional Budget Office (CBO) has released its 10-year budget forecast, which presents a gloomy outlook for the US economy. The report states that the Trump administration’s policies, including the One Big Beautiful Bill, will increase the national debt by $4.1 trillion over the next 9 years. The CBO also predicts that interest expense on the national debt will rise to $2.2 trillion by 2035, accounting for the entire increase in the deficit and over half of the increase in the debt.
Our Reading
The numbers tell one story. The One Big Beautiful Bill will expand the primary deficit, making the national debt spiral faster. The CBO’s forecast is even more concerning than last year’s report, with primary deficits that are larger than expected. The Trump tariffs, which were expected to offset some of the deficit, are no longer a reliable source of revenue. Interest expense on the national debt will rise to $2.2 trillion by 2035, a 115% increase from 2026.
The US government is effectively “refinancing” its debt, causing more interest and more debt. The folks are a lot more responsible than the leaders, but it’s the folks who will eventually need to pay.
Author: Evan Null
