Growth Alone Won’t Fix a $40 Trillion Debt, Warns Top Economist

With the U.S. debt reaching $40 trillion, Trump argues the economy can grow its way out of the problem, but Kent Smetters of the Wharton School calls the notion a “fantastic story” that isn’t realistically feasible. The debt-to-GDP ratio sits around 122%, and major entitlement costs (Social Security, Medicare, Medicaid) and political constraints limit any growth-driven fix. Bond-market signals and unscheduled Treasury buybacks highlight looming risks, while policymakers debate deficit reduction or commissions. Economists emphasize that a credible, broad-based plan—not growth alone—is needed to address the debt, even as AI-driven investment fuels near-term expansion and midterm politics heighten attention to fiscal policy.