Treasury Secretary Scott Bessent spoke on Fox News about the growing national debt and how it can be managed through economic growth. His comments came after the House passed President Trump’s “Big, Beautiful Bill,” which critics say could add $3.8 trillion to the deficit over the next decade. Currently, the national debt is nearing $37 trillion, with the federal deficit exceeding $2 trillion.
Bessent emphasized the importance of the economy growing faster than the debt. He believes that by focusing on the debt-to-GDP ratio, the country can find a way to manage its financial obligations. He pointed out that while the U.S. debt was 124% of the nominal GDP in December, it had decreased from a peak of 130.4% in March 2021. He stated, “If we change the growth trajectory of the country, then we will stabilize our finances and grow our way out of this.”
The approach Bessent supports involves reducing taxes, which is a key element of Trump’s proposed legislation. The idea is that lower taxes and less regulation will stimulate economic activity, leading to increased tax revenues without raising tax rates. However, a recent Congressional Budget Office report warned that the deficit is expected to outpace economic growth over the next 30 years, potentially reaching 8.5% of GDP by 2054 due to rising interest costs and sustained deficits.
In the 2024 campaign, Bessent set ambitious goals: to cut the deficit to 3% by 2028, achieve 3% real economic growth primarily through deregulation, and increase energy production by 3 million barrels per day. He reassured that Trump is committed to addressing the national debt without triggering a recession.
Yet, not all Republicans are on board with the “Big, Beautiful Bill.” Some conservative members, like Reps. Thomas Massie and Warren Davidson, expressed concerns that the bill does not sufficiently address government spending. Davidson remarked that while he supports many aspects of the bill, he cannot back a plan that increases deficits.
The White House defended the bill, with Press Secretary Karoline Leavitt dismissing the dissenting Republicans as “grandstanders.” She argued that opposing the bill could lead to tax increases or even bankruptcy for the country, urging party unity.
As the bill moves to the Senate, it faces further challenges. Senator Rand Paul has indicated he will oppose it unless significant changes are made, particularly concerning the debt ceiling increase, which he believes is excessive.
The debate continues as lawmakers weigh the potential economic impacts of the proposed legislation against the backdrop of a growing national debt.