US Debt to Exceed Italy's as Trump's Tax Cuts Bite Hard
The United States is careening towards a fiscal cliff, with its debt-to-GDP ratio projected to surpass that of both Italy and Greece by the end of the decade. The culprit? A "big, beautiful bill" signed into law by President Donald Trump earlier this summer, which has loaded the national tab with a slew of tax cuts and increased defense spending.
According to International Monetary Fund (IMF) forecasts, the US debt will swell from 125% to 143% of annual income by 2030 – a staggering increase that threatens to undermine the nation's economic stability. Meanwhile, Italy's debt-to-GDP ratio is stuck at around 137%, while Greece is expected to cut its own debt burden from 146% to 130% over the same period.
The White House has welcomed the tax cuts as a boon for middle and high-income earners, but critics argue that they will do little to stimulate growth and instead fuel further borrowing. The result? Annual budget deficits are projected to soar above 7% over the next five years, with spending increases expected to push the total debt upward by $7 trillion per year by the time Trump leaves office in 2029.
European economists are growing increasingly concerned about the implications of this fiscal trajectory. Lorenzo Codogno, a former chief economist at Italy's treasury department, warns that the economy and public finances remain vulnerable to a sudden downturn in the global scenario. Meanwhile, Mahood Pradhan, head of global macro at Amundi Investment Institute, notes that the US debt will continue to rise as long as the government runs perpetual deficits.
It's a sobering reminder that the United States is not immune to the economic headwinds facing Europe. As James Knightley, chief international economist at ING, observes, "Many US politicians and investors look down somewhat on Europe and its slow growth and struggling economies, but when you have metrics like this, the conversation changes." The nation's fiscal woes are no longer a distant concern – they're an immediate reality that demands urgent attention.
The United States is careening towards a fiscal cliff, with its debt-to-GDP ratio projected to surpass that of both Italy and Greece by the end of the decade. The culprit? A "big, beautiful bill" signed into law by President Donald Trump earlier this summer, which has loaded the national tab with a slew of tax cuts and increased defense spending.
According to International Monetary Fund (IMF) forecasts, the US debt will swell from 125% to 143% of annual income by 2030 – a staggering increase that threatens to undermine the nation's economic stability. Meanwhile, Italy's debt-to-GDP ratio is stuck at around 137%, while Greece is expected to cut its own debt burden from 146% to 130% over the same period.
The White House has welcomed the tax cuts as a boon for middle and high-income earners, but critics argue that they will do little to stimulate growth and instead fuel further borrowing. The result? Annual budget deficits are projected to soar above 7% over the next five years, with spending increases expected to push the total debt upward by $7 trillion per year by the time Trump leaves office in 2029.
European economists are growing increasingly concerned about the implications of this fiscal trajectory. Lorenzo Codogno, a former chief economist at Italy's treasury department, warns that the economy and public finances remain vulnerable to a sudden downturn in the global scenario. Meanwhile, Mahood Pradhan, head of global macro at Amundi Investment Institute, notes that the US debt will continue to rise as long as the government runs perpetual deficits.
It's a sobering reminder that the United States is not immune to the economic headwinds facing Europe. As James Knightley, chief international economist at ING, observes, "Many US politicians and investors look down somewhat on Europe and its slow growth and struggling economies, but when you have metrics like this, the conversation changes." The nation's fiscal woes are no longer a distant concern – they're an immediate reality that demands urgent attention.
the us is always been good at throwing money around, it's like we forget about tomorrow 
anyway, trump's tax cuts are just gonna fuel more debt and inflation, who's gonna pay for it? 
the middle class ain't got nothin' to do with it, they're the ones gettin' screwed over 
the economy's already got some major issues, and now we're addin' more fuel to the fire 
it's like we're just waitin' for that fiscal cliff to come crashing down 
and when it does, watch out world 
I'm really worried about the US debt situation. It's crazy to think that it's gonna be bigger than Italy's by 2030 
. The tax cuts are like, super beneficial for the rich and corporations, but not so much for the average joe 
That's just insane! We need some serious fiscal reform ASAP, imo 
We're already talking trillions of dollars here... it's mind-boggling to think about the potential consequences. And it's not just about the US; this is a global problem, connected to our individual and collective economic choices. Does that mean we need to reevaluate what we consider 'growth' and ' prosperity'? 
. I mean, what happens when the economy takes a hit and we're already drowning in debt? It's like, how do we even pay for everything at this point? And these politicians are just like "oh, don't worry, it'll be fine"... meanwhile, the European economists are all like "um, yeah, it won't be fine"... 
I guess what I'm saying is, let's not get too caught up in nostalgia for the good old days when debt wasn't such a huge issue... we need to face the music and start making some real changes 
. In fact, they might be making things worse 
. Our economy is already experiencing some weird stuff with inflation and interest rates, so adding more debt to the mix doesn't sound like a good idea 
.
We need to get our priorities straight and stop propping up the wealthy elite while the rest of us are left to pick up the tab. The IMF is right, this debt-to-GDP ratio is getting out of control and it's only a matter of time before it all comes crashing down.
143% of their income? that's insane! 
. everyone's all about tax cuts for the rich, but what about the poor and middle class? who's going to foot the bill when the economy starts tanking? 
. we need some serious fiscal reforms ASAP or else we're all in trouble 
.
. And what really gets me is that our budget deficits are projected to soar above 7% in the next few years 
. It's not like Europe isn't facing its own economic challenges, but this is still somethin' we gotta take seriously 
its like woah the us is headed down a fiscal cliff and we cant do anything about it 
i swear trump rly doesnt know what hes doing 
anywayz lets just stick w/ trump lol he knows best 
I mean, I get it, tax cuts are supposed to stimulate growth, but if it's not working, then what's the point? And $7 trillion per year increase in debt?