American activist and president of the Committee for a Responsible Federal Budget
The US has passed $40 trillion in total public debt, the Treasury has reported, driven by large pandemic-era and recent spending and tax changes. Interest payments have risen sharply and are now a larger budget item than many programmes. Treasury officials argue growth can be managed by stronger economic growth and fiscal consolidation.
The New York Times reports that President Trump’s bid to reduce inflation and curb spending has faced setbacks. A global trade war and renewed tariff battles, including with Canada, have kept prices elevated. Iran and ongoing military interventions have contributed to a high debt level, complicating voters’ view of his economic plan two months before the midterms.
Leaders from multiple publications report that President Trump has pledged to pay $5,000 to every American adult if Republicans retain control of Congress. The pledge has sparked debate over funding, legality, and potential inflation, with critics labeling it a vote-buying gimmick and supporters praising the gesture as economic relief.
Trump has pledged a $5,000 payment to every American adult if Republicans win control of Congress, triggering sharp criticism from Democrats and alarm among economists about the plan’s cost and feasibility. The proposal, branded as a “Trump dividend,” would amount to roughly $1.2 trillion and could worsen the deficit. Commentators note prior broken promises and highlight the broader political and economic implications.
Bridgewater founder Ray Dalio has warned that the world is facing a debt crisis as debt supply outpaces demand. He says governments and large tech firms are flooding markets with debt while buyers in China and Japan pull back. He predicts a crisis within the next two to three years, urges hedges like inflation-linked bonds, and marks diversification beyond the US.