Federal debt relative to tax receipts has never been higher. From Ryan McMaken at mises.org:
Politicians from Alexandria Ocasio-Cortez to Dick Cheney are united in their agreement that deficits don’t matter. Of course, that’s exactly what a politician would say. Politicians score points by spending other people’s money, so naturally, they don’t want to hear anything about how prudence suggests it might be a good idea to not spend that extra 800 billion dollars they don’t have.
But there is apparently little concern in Washington, DC as the annual deficit — for a single year, mind you — approaches one trillion dollars for the first time since the hit-the-panic-button days of the Great Recession. Except that now huge deficits are coming during “good” economic times.
Moreover, as the Congressional Budget Office has forecast, the debt load is expected to rise to 125 percent of GDP over the 20 years. That’s higher than the US debt-to-GDP ratio during World War II.
This, of course, assumes no major geopolitical or economic disruptions, whicih would make things far worse.
For those who believe huge debts are no big deal, however, there’s still no need to worry. After all, they say, actual debt payments are still only a minor issue. In fact, they’re still lower than where they were during the early 1990s.