Marketplace · Wednesday, September 23, 2026
The U.S. government is facing increased costs for servicing its $40 trillion debt as interest rates rise. While not yet apocalyptic, servicing the debt currently costs 3.5% of annual gross output, a figure projected to reach 5% in 10 years if current trends continue.
“And and with $40 trillion in debt, the US government now is paying a whole lot more for borrowing. And that of course trickles down.”
“Servicing its debt costs the US $3.5% of its gross annual output. And that's not great. But it's not apocalyptic.”
“But given the current trend lines, uh, just look, you know, in 10 years' time, suddenly the US is going to be spending around 5% of its gross annual output on just servicing its government debt. The trend lines are bad, unambiguously.”