August 20, 2026
Newsweek recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing the economic implications of the U.S. national debt surpassing $40 trillion.
The article examines the historic debt milestone, noting that total outstanding federal debt reached approximately $40.05 trillion. It also explores the growing burden of interest payments and the Congressional Budget Office’s projection that debt held by the public could rise from approximately 101 percent of GDP in 2026 to 120 percent by 2036.
Williams warned that rising debt could contribute to higher borrowing costs, reduced consumer spending and slower economic growth, saying, “In surpassing $40 trillion in cumulative debt, the White House is ignoring basic economic fact: greater debt eventually leads to higher interest costs and increased inflation.”
Williams also discussed the potential impact of current tax policies and government borrowing, noting that the resulting “crowding-out effect” could slow economic growth and potentially contribute to a recession. The government’s continued borrowing could have broader implications for consumers and businesses as the country heads into 2027.
