U.S. national debt will reach 225% of GDP by 2050

The U.S. public debt will continue to rise over the next thirty years, reaching a high that could jeopardize the country's economy, according to a new study.

According to the Penn Wharton model developed by the Wharton School of Business at the University of Pennsylvania, the national debt will be 225% of U.S. GDP by 2050.

In addition, the study notes that the amount of current debt and projected future spending exceeds upcoming tax revenues. This is why current fiscal policy is not balanced.

The study also suggests that an increase in tax revenues by more than 40% on a regular basis, as well as a reduction in spending by 30%, or a combination of both, can allow achieving a balance in the government's fiscal policy. 

As the debt increases, so do the interest payments on it. According to the Congressional Budget Office, interest on the national debt in fiscal year 2022 turned out to be the part of the budget growing at the fastest rate. Interest could triple from nearly $400 billion in fiscal year 2022 to an impressive $1.2 trillion by 2032, according to available forecasts.