Why Trump and Harris Avoid the $28 Trillion Debt Crisis – Fiscal Risks Ahead

The U.S. national debt surpasses $28 trillion, yet both Trump and Harris ignore the deficit. Learn about the economic and security risks.

The $28 Trillion Debt: A Crisis Candidates Won't Discuss

The United States is facing a staggering national debt of over $28 trillion, a figure that nearly equals the entire U.S. economy. Despite the severity of this fiscal challenge, neither Donald Trump nor Kamala Harris has made reducing the deficit a central part of their campaign platforms. Instead, their proposed economic policies are projected to widen the deficit further, according to several nonpartisan groups.

Understanding the Deficit and Its Consequences

A budget deficit occurs when government spending exceeds revenue from taxes and other sources. To cover this gap, the U.S. borrows money by selling Treasury bonds and other securities. The national debt now stands at levels that worry economists and Federal Reserve officials. Jerome Powell, the Fed Chair, recently stated, "It’s probably time, or past time, to get back to an adult conversation among elected officials about getting the federal government back on a sustainable fiscal path."

The current fiscal year is expected to end with a $1.9 trillion deficit—a dramatic increase from the $450 billion deficit in 2008. During the 2008 presidential debates, then-Senator Barack Obama emphasized fiscal responsibility and a "pay-as-you-go" approach. That bipartisan concern has faded. In the recent Trump-Harris debate, the budget deficit was mentioned only twice. Harris criticized Trump's proposals as more damaging to the deficit, but neither candidate offered plans to reduce it.

A Historical Shift: From Obama to Trump

When President Obama left office in 2017, the deficit had fallen to $670 billion, about half of what it was when he took office in 2009. That reduction stemmed largely from the economic recovery after the Great Recession, which reduced spending on safety-net programs and bank bailouts. Under President Trump, the deficit widened each year, reaching a peak in 2020 due to massive COVID-19 relief spending. Now, both parties seem unwilling to make tough choices: Republicans focus on tax cuts, Democrats on increased government spending.

The Real-World Impacts of Rising Debt

A larger deficit means the U.S. must borrow more from investors, including foreign governments like China. Lenders may demand higher interest rates, making mortgages and other loans more expensive for Americans. The Congressional Budget Office projects that in 2024, the government will spend more on interest payments than on national defense, Medicaid, and children’s programs combined. As Powell noted in a "60 Minutes" interview, "We’re borrowing from future generations." This robs the economy of funds for infrastructure, education, and other critical investments.

Furthermore, the growing national debt poses a national security risk: heavy reliance on foreign debt buyers can create vulnerabilities. Additionally, the Federal Reserve may be forced to "print money" to help the government meet its obligations, potentially fueling inflation.

Why Politicians Avoid the Issue

Kent Smetters, a professor at the Wharton School of the University of Pennsylvania, explains that politicians prefer delivering immediate benefits to voters rather than making painful fiscal adjustments. Both parties advance their agendas—tax cuts or spending increases—before sacrifices become unavoidable. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warns that the debt contributions from both candidates' plans "will make things worse unless something changes."

In short, the U.S. confronts a $28 trillion debt crisis that neither Trump nor Harris is adequately addressing. The risks—higher interest rates, reduced government investment, inflation, and national security threats—demand urgent attention. Voters must push for fiscal responsibility before the burden on future generations becomes insurmountable.