David Solomon’s Stark Warning on America’s Soaring Debt
Goldman Sachs CEO David Solomon has issued a blunt warning about the United States’ ballooning national debt, saying the country is heading toward a serious financial crisis if it doesn’t change course soon. Speaking with David Rubenstein on The David Rubenstein Show, Solomon said the growing debt could eventually force the nation into a painful reckoning.
“The math just doesn’t work if we keep adding trillions without faster growth,” Solomon cautioned.
Right now, the U.S. national debt stands at $38 trillion, a number that’s hard to even comprehend. What’s more alarming, according to Solomon, is how quickly it’s been rising—with little sign of slowing down.
The Debt Explosion: A Decade of Rapid Growth
The speed of the debt increase is staggering. Solomon pointed out that the U.S. owed about $10 trillion in 2008, but that number has nearly quadrupled in just over a decade and a half.
“It doesn’t seem like we have the ability to pull it back,” Solomon said, noting that heavy government spending has become “baked into” how modern economies function.
Recent data backs him up. The Peter G. Peterson Foundation found that the jump from $37 trillion to $38 trillion was one of the fastest increases ever outside of the pandemic years. Its CEO, Michael Peterson, described this as a dangerous cycle of “budgeting-by-crisis,” adding that America cannot keep adding “trillion after trillion” without facing serious consequences.
Solomon’s Solution: Growth Over Taxes
While many policymakers argue for higher taxes or deep spending cuts to control the deficit, Solomon believes the real answer lies elsewhere.
“The solution isn’t just about collecting more taxes,” he said. “It’s about driving stronger economic growth.”
He explained that the difference between 2% and 3% annual economic growth might sound small, but over time, it’s massive. That extra 1% could determine whether the U.S. can manage its debt—or drown under it.
According to Solomon, the key is to focus on boosting productivity and creating the conditions for sustainable expansion rather than relying on short-term fiscal fixes.
Tech and Infrastructure: America’s Growth Lifelines
Despite his grim warnings, Solomon isn’t without hope. He pointed to technology and artificial intelligence (AI) as powerful tools that could lift productivity and efficiency across the economy. “There’s a real productivity opportunity here,” he said, suggesting that digital transformation could be a turning point for U.S. growth.
He also highlighted the current infrastructure investment boom as a major tailwind. Several large American companies are expected to spend over $350 billion this year on infrastructure projects—an investment wave that could provide a much-needed growth spark.
In addition, Solomon welcomed recent regulatory reforms aimed at cutting red tape, saying a “more balanced, practical approach to regulation” could further stimulate business confidence and expansion.
“If It Keeps Growing, It’s Going to Turn to Us”
Solomon warned that the U.S. can’t keep piling on debt forever. If the government continues borrowing at current levels, he said, the national debt could easily hit $40 trillion within a few years.
“Ultimately, we have to find people to buy and finance our debt,” he said. “But if it keeps growing, it’s not going to be other people around the world who solve it—it’s going to turn to us.”
His point was clear: global investors may not always be willing—or able—to bankroll America’s debt. When that moment comes, the burden will fall squarely on U.S. taxpayers and policymakers.
Financial Titans Sound the Same Alarm
Solomon isn’t the only high-profile voice warning about America’s fiscal trajectory. Ray Dalio, the billionaire founder of Bridgewater Associates, has been warning for years that the country is heading toward what he calls an “economic heart attack.”
Dalio compares the growing debt to “plaque” clogging an artery—it builds up slowly until it suddenly causes a crisis. Other business leaders share that frustration, including Beazer Homes CEO Allan Merrill, who said the U.S. has developed a “buy now, pay later” mentality with its public finances.
“We want things we don’t want to pay for right now,” Merrill said. “We’re letting someone else in the future pay for them.”
The Economy Today: Strong, But Vulnerable
Even with the long-term warning, Solomon was surprisingly upbeat about the short-term health of the U.S. economy.
“The economy is in pretty good shape right now,” he said, noting that consumer spending, corporate investments, and the ongoing tech boom are all helping to support growth. He added that the chance of a recession in the near term is low.
However, he cautioned that policy uncertainty—especially around election cycles—remains a challenge. “Our job as business leaders is to adapt and adjust,” he said. “We can’t avoid uncertainty; we just have to manage it.”
He also underscored the importance of maintaining Federal Reserve independence, calling it a cornerstone of global financial stability. “Central bank independence has served us very, very well,” Solomon said.
Can Growth Save America from a Debt Crisis?
At the heart of Solomon’s message is a simple truth: America cannot borrow its way to prosperity. The only sustainable path forward is through stronger, faster, and smarter growth.
Technology, infrastructure investment, and responsible regulation can all play a role—but without fiscal discipline, even the strongest economy can stumble.
“There will be a reckoning,” Solomon warned. The question now is not if, but when—and whether the U.S. can grow fast enough to stay ahead of its own debt.
