The Millennial Debt Commission is a wonderful example of bipartisanship. I appreciate and respect so much the efforts you put forward.
U.S. Senator Joe Manchin (WV)
The growth of the national debt has been fueled primarily by rising government spending, but righting the ship necessitates a more complex set of solutions: cutting spending, growing the American economy, and finding ways to increase revenue without threatening needed growth or hurting Americans who are already struggling.
The focus of this plan is on the long-term debt problem facing the country. The growth in that debt is being driven by major entitlement programs, demographics, health care inflation, and the debt service (interest payments and other maintenance costs) on that debt. As a result, to slow the growth in the debt, the plan focuses on making long-term structural reforms to these programs as well as proposals to increase revenue and grow the economy.
In fiscal year 2023, federal debt held by the public amounted to 97.2% of Gross Domestic Product (GDP). Under current law, Congressional Budget Office (CBO) projects debt will rise to 166% of GDP by 2054. The sections below describe proposals to reduce the debt and the amount by which each proposal would reduce the debt including debt service. They also include an estimate of the reduction in interest rates if all the proposals were implemented and the effect of those lower rates on debt-to- GDP in 2054.