As the government increases debt, it puts upward pressure on interest rates. In their economic July long-term economic projections, CBO projects the interest rate on all federal debt rises from 1.7% in 2021 to 3.1% by 2032 and to 4.2% by 2052. The debt reduction plan outlined in this document would reduce debt by an estimated 56.2% of GDP by 2052, just as millennials are retiring. This huge reduction in debt further illustrates the importance of fiscal stewardship now. Based on past CBO analyses, it uses a conservative estimate and assumes the debt reduction plan would gradually reduce interest rates reaching 75 basis points by 2052, producing an additional 8.0% for a total of 56.2% reduction in debt relative to GDP[5].