"The United States' current borrowing trajectory will place an "undue burden on future generations," an economic think tank has warned, with younger generations facing a higher interest rate environment, slower economic growth, and stalling wage increases. The latest research from the American Action Forum chimes with concerns across both the public and private sectors. Everyone from JPMorganChase CEO Jamie Dimon to Fed chairman Jerome Powell is nervously eyeing the nation's $38 trillion debt burden."
""The United States' high debt load exacerbates generational imbalances. These imbalances will ultimately burden younger and future generations with higher interest payments, slower economic growth, slower income growth, and a greater burden to bear for future tax or spending changes. Without significant policy changes to reduce debt growth, future generations will inherit a budget where significant resources are locked into servicing past borrowing.""
U.S. federal debt is near $38 trillion and the government paid roughly $10 billion per week to service that debt in the early 2026 fiscal year. Current borrowing trends will raise the cost of government financing and could leave future budgets with large shares committed to interest payments. Younger and future generations will face higher interest payments, slower economic growth, slower income growth, and greater burdens in future tax or spending adjustments. Economists fear that a disconnect between economic growth and government borrowing could force bond investors to demand higher premiums, trigger central bank monetary expansion and inflation, or compel spending cuts that crowd out public investment.
Read at Fortune
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