Government Debt and Economic Overreach

The U.S. economy is facing significant challenges due to escalating government debt, which now constitutes 40% of the GDP. The federal government has run an unprecedented deficit, nearly reaching $800 billion in the first quarter of fiscal 2025. This level of deficit spending raises concerns about the sustainability of the welfare state, suggesting a potential unraveling of government financial management. Similar patterns are observable in Canada and the UK, indicating a broader trend of governmental economic overreach that could lead to slower economic growth and heightened inflation.