The U.S. national debt crossed $40 trillion this week, prompting Treasury Secretary Scott Bessent to declare Thursday that the only path forward is to "grow our way out of debt."
Bessent dismissed the milestone itself. "There is nothing magic about the $40 trillion number," he said. "We can grow our way out of that."
Vice President JD Vance confirmed Thursday night that Bessent, with President Trump's backing, has a "discreet plan" to address the debt by getting the U.S. economy "growing faster than our debt." Vance said the Trump administration is "certainly fixing" the problem where "the debt was growing faster than American GDP" under the Biden administration and claimed the team is "on track" for the economy to outpace debt growth.
President Trump has discussed a "sovereign wealth fund" as one measure, Vance said. He also blamed inherited debt charges, saying American taxpayers face "very high debt charges" left over from the previous administration.
But economists say the math does not work. Reducing debt through growth alone would require the economy to exceed its historical GDP growth rate by two to three times for decades—a scenario they describe as close to impossible.
The administration's plan remains largely unclear beyond its emphasis on stronger economic growth. The nation also faces a long-term challenge in restraining spending or reforming entitlement programs that drive rising debt.
