Report: CEOs Rank $34T National Debt as Top Geopolitical Threat in 2024

At $34 trillion and rising, the national debt is the top geopolitical threat in 2024, according to CEOs responding to a survey commissioned by The Conference Board, a New York City-based 501(c)(3) nonprofit that publishes regular indicators for United States and international economies.
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File DBusiness cover
According to a recent survey of CEOs by The Conference Board, the national debt is the geopolitical timebomb of 2024. // File rendering

At $34 trillion and rising, the national debt is the top geopolitical threat in 2024, according to CEOs responding to a survey commissioned by The Conference Board, a New York City-based 501(c)(3) nonprofit that publishes regular indicators for United States and international economies.

The survey concluded that the U.S. fiscal outlook continues to deteriorate, with the deficit for fiscal year 2023 topping estimates at $1.7 trillion.

It further states that the game changer in United States’ complacency about debt is 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.

The increasing practice of issuing U.S. Treasury securities to finance deficits and debt places tremendous strain on the financial system, potentially raising business borrowing costs, limiting access to capital, and lowering our standard of living.

The survey also states that the “congressional debate this year over fiscal year 2024 spending levels has contributed to a historic collapse of governance in the U.S. Congress, a broken budget process, the brink of a national default, a looming government shutdown, and the potential downgrading of the US credit rating. U.S. global leadership and national security are at risk.”

The report concludes that the need for “bold action” is urgent. A national strategic goal should be to reduce the U.S. debt-to-GDP ratio to 70 percent. To begin to achieve this reduction, a Bipartisan Congressional Commission on Fiscal Responsibility should be established to immediately address 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.”

To read the full results of the survey, visit here.

DBusiness magazine published a cover story on the national debt in its November-December 2023 issue. To read it, visit here.