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Treasury Secretary Scott Bessent told reporters this week that the United States must “grow our way out” of the national debt after gross federal debt topped the $40 trillion mark. He stressed that the headline number looks worse than it is if you separate publicly held debt from intragovernmental obligations like Social Security. That is a useful distinction, but it does not erase the fact that our debt is ballooning and Washington keeps spending like there’s no tomorrow.
Grow our way out? Growth helps, but it isn’t a magic wand
Bessent is right that economic growth is the best long-term path to lower debt-to-GDP ratios. A bigger economy makes the same debt easier to carry. But saying “grow our way out” is the political equivalent of saying “pray harder” — it sounds hopeful, but it is not a plan by itself. If lawmakers keep passing new spending programs every time the economy ticks up, growth just becomes another reason to spend more.
Tariffs, refunds, and fiscal accounting
The Treasury secretary also blamed recent tariff refunds — forced by a court ruling — for worsening the deficit picture and said new Section 301 tariffs should restore that revenue. Fine. Tariffs can raise money, but they also raise prices and invite legal and trade fights. And calling tariff refunds an accounting glitch is a neat way to dodge the tougher truth: the real driver of rising deficits is persistent spending. The announcement that Director Russ Vought and others will do a fiscal consolidation review is welcome. It will mean nothing if it stops at paperwork and doesn’t cut real programs.
Politics, blame, and the missing courage on spending
Bessent didn’t shy away from assigning blame to the Biden administration for a record high deficit-to-GDP in peacetime and non-recession years. That may be accurate, but both parties have been guilty of spending too much for too long. Conservatives should stop treating growth and tax hikes as mutually exclusive excuses for inaction. If Republicans want credibility on debt, they must pair pro-growth policies with real spending limits, entitlement reforms, and a commitment to balanced budgets when the economy allows it.
Bottom line: growth needed, but discipline is the point
Growth is necessary. But it is only one half of the equation. Washington cannot hope to paper over exploding debt with GDP gains while continuing to expand the federal bill every time the ledger looks healthier. If the administration and Congress truly want to tackle the national debt, they must show fiscal discipline, protect entitlement solvency, and stop treating economic growth like an invitation to spend more. Otherwise the $40 trillion headline will just be the first of many big numbers we pretend to solve with pep talks.
