U.S. CEOs say the geopolitical risk that concerns them the most regarding business operations is the burgeoning U.S. national debt and deficits, according to a study from The Conference Board.
“The need for bold action is urgent. A national strategic goal should be to reduce the U.S. debt-to-GDP ratio to 70%. To begin to achieve this reduction, a Bipartisan Congressional Commission on Fiscal Responsibility should be established to immediately address both mandatory and discretionary spending, including the biggest drivers of deficits and the long-term debt: Medicare and Social Security, whose trust funds are becoming insolvent. To address the revenue challenge, the Commission should undertake comprehensive tax reform based on the principles of fairness, efficiency, and simplicity,” says The conference Board.
- The U.S. fiscal outlook continues to deteriorate, with the deficit for FY2023 topping estimates at $1.7 trillion.
- The cost of servicing the debt is rapidly rising due to inflation and rising interest rates, consuming as much of the federal budget as defense spending and crowding out national priorities.