Debt

The Federal Spending Spree Will Make the Next Economic Shock Even Worse

Growing federal debt hobbles the government’s ability to respond to crises.

J.D. Tuccille | 3.18.2026 7:00 AM

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You're probably tired of hearing about the U.S. government's looming debt crisis, because it's a continuing backdrop to political conversations in this country. Unfortunately, the government's debt problem comes up so often because most politicians do very little to address the issue. Year after year, they spend more than the government collects in revenue. A new report cautions that growing federal debt not only guarantees a day of reckoning but hobbles chances of fixing the situation.

You are reading The Rattler from J.D. Tuccille and Reason. Get more of J.D.'s commentary on government overreach and threats to everyday liberty.

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The Federal Government Will Face the Next Crisis Burdened by Debt

"The U.S. has never experienced an economic shock as indebted as we are today," notes the Committee for a Responsible Federal Budget (CRFB) in a paper published March 10. "Unfortunately, the U.S. has far less capacity to address the next shock than it has previously. The national debt increased by a combined 65% of Gross Domestic Product (GDP) over the past two recessions and recoveries, with the federal government entering them with debt at 35% and 80% of GDP, respectively. Today, debt totals 100% of GDP—only a few percentage points from the previous record set after World War II. This situation leaves the U.S. immensely vulnerable."

The CRFB previously addressed what that next shock might look like in a January paper. It considered several scenarios,........

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