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House Speaker Kevin McCarthy highlighted this week that the nation’s debt exceeds the size of the entire U.S. economy.
After meeting with President Joe Biden on Tuesday regarding raising the debt ceiling, McCarthy said to reporters, “The real question is, how much debt is too much? We’re at $32 trillion almost, 120 percent of our GDP. That means it’s larger than our economy by 20 percent.”
The only other time this has happened in modern history was in 1946 in the immediate aftermath of World War II, when the U.S. debt to GDP ratio stood at 106 percent, according to The Wall Street Journal.
McCarthy further noted the U.S. has already borrowed $1 trillion in the current fiscal year, which ends on Sept. 31.
The Congressional Budget Office projected this month that the deficit will be $1.5 trillion for the year, up from February’s forecast of a $1.4 trillion shortfall.
The CBO also calculated that deficits will average $2 trillion per year for the next 10 years under current spending policies.
McCarthy explained the nation’s fiscal situation on Fox News’ “Hannity” on Wednesday, saying, “You can’t keep raising the debt ceiling. It’s like having your child have a credit card and year after year after year, you keep reaching the limit and you just keep expanding it, expanding it.
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