TechFlow news, on October 17, according to Jinshi Data, Brian Moynihan, CEO of Bank of America, recently issued a warning regarding the U.S. debt situation. He stated that if the United States fails to balance spending with economic growth, it might lose its "golden standard" status in the economy.
As of October 2024, the U.S. national debt has exceeded $35.7 trillion, amounting to over $105,000 per American on average. Moynihan urged policymakers to prioritize developing plans to restore the national debt-to-GDP ratio to normal levels. He emphasized that this is not an issue that can be resolved within the first week of a new administration, nor is it merely a matter of whether the previous administration continues in power—it is a matter of long-term fiscal discipline.
Moynihan pointed out that for the past 10 to 12 years, there have been consistent concerns about rapidly growing debt. During the COVID-19 pandemic, governments spent heavily to address the crisis, but now that the pandemic is over, it's time to consider how to pay these bills. According to data from the Committee for a Responsible Federal Budget, the Trump administration added $8.4 trillion in net debt, while the Biden administration added $4.3 trillion.
The Congressional Budget Office projects that by 2054, U.S. debt will reach 166% of GDP, totaling $141.1 trillion. Moynihan believes addressing this challenge requires strict discipline from all sides and can be achieved through various means such as economic growth, expenditure control, and tax adjustments to balance debt relative to GDP.
