The federal debt

Robert Reich - The federal debt is a problem. This year, the United States will spend about $870 billion, or 3.1 percent of gross domestic product on interest payments on the debt. That’s more than the entire defense budget. But take a closer look.The major reason for the huge federal debt is Trump’s and George W. Bush’s tax cuts, which together added $10 trillion to the debt since their enactment. They’re responsible for 57 percent of the increase in the ratio of the national debt to the economy since 2001.

Excluding the one-time costs of responding to Covid-19 and the Great Recession, the Bush and Trump tax cuts account for more than 90% of the increase in the debt ratio. Most of the benefits of those tax cuts, not incidentally, have gone to the rich. 65 percent of the benefits of the Trump tax cuts have gone to the richest fifth of Americans, 22 percent to the top 1 percent.