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Former economic advisor Jared Bernstein warns of a potential US debt crisis, likening the situation to unsustainable student loan debt. He notes that rising interest rates, fueled by factors including pandemic spending and recent tax cuts, are outpacing economic growth. This convergence, coupled with increasing national debt, creates a dangerous trajectory. Bernstein advocates for pre-determined fiscal responses to avoid drastic spending cuts or tax hikes. The US already spends more on debt interest than on Medicare and defense, a figure projected to reach $1 trillion next year.

Prepared by Christopher Adams and reviewed by editorial team.