{"id":769242,"date":"2026-05-02T23:58:18","date_gmt":"2026-05-02T23:58:18","guid":{"rendered":"https:\/\/www.europesays.com\/us\/769242\/"},"modified":"2026-05-02T23:58:18","modified_gmt":"2026-05-02T23:58:18","slug":"economist-steve-hanke-sounds-alarm-as-us-debt-tops-100-of-gdp-calls-for-constitutional-fix","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/769242\/","title":{"rendered":"Economist Steve Hanke Sounds Alarm As US Debt Tops 100% of GDP, Calls For Constitutional Fix"},"content":{"rendered":"\n

Professor Steve Hanke, <\/strong>an economist at Johns Hopkins University,<\/strong> called for a constitutional debt brake in the U.S. in an X post on Thursday.<\/p>\n

He shared a post citing Bureau of Economic Analysis data <\/strong>showing U.S. national debt has crossed 100% of GDP for the first time since World War II.<\/p>\n

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THE U.S. NEEDS TO AMEND THE CONSTITUTION TO INCLUDE A DEBT BRAKE.https:\/\/t.co\/2vXkZbBaAG<\/a><\/p>\n

\u2014 Steve Hanke (@steve_hanke) May 1, 2026<\/a><\/p>\n<\/blockquote>\n

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Numbers Behind The Milestone<\/strong> <\/p>\n

The U.S. national debt reached 100.2% of Gross Domestic Product <\/strong>(GDP) at the end of March, according to data from the Bureau of Economic Analysis<\/strong>, marking the first time it has exceeded the size of the economy since World War II. Debt held by the public stood at $31.27 trillion, compared with nominal GDP of $31.22 trillion over the prior 12-month period.<\/p>\n

The federal government\u2019s interest payments on public debt reached $529 billion in the first half of fiscal year 2026, nearly equaling combined spending on defense ($461 billion) and education ($70 billion), according to the CBO. The federal deficit totalled $1.2 trillion from October through March, with total outlays of $3.7 trillion.<\/p>\n

What the Balance Sheet Shows <\/p>\n

The Treasury’s latest financial statement showed the U.S. government ended fiscal 2025 with $6.06 trillion in assets and $47.78 trillion in liabilities, a negative net position of $41.72 trillion.<\/p>\n

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Hanke has previously described the federal government as functionally insolvent, estimating that on a household scale, it earns $52,446 a year while spending $73,378. Subprime loan delinquency rates have also hit 10%, an 11-year high, according to Equifax and Moody\u2019s Analytics.<\/p>\n

Growth With a Catch<\/strong> <\/p>\n

The broader economy is still expanding, but unevenly. U.S. GDP expanded at an annualised rate of 2% in the first quarter, above the prior 0.5% pace but below the 2.3% economists expected. Core PCE, the Fed\u2019s preferred inflation gauge, rose 3.2% year over year in March, driven largely by energy costs tied to the Iran conflict.<\/p>\n

JPMorgan Chase & Co.<\/strong> CEO Jamie Dimon <\/strong>has warned that the country\u2019s fiscal trajectory cannot be ignored indefinitely.<\/p>\n

Image via Shutterstock<\/p>\n

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