‎Goldman Sachs CEO David Solomon Warns of Looming U.S. Debt Reckoning, Calls for Growth-Led Solution

‎Goldman Sachs CEO David Solomon has cautioned that the United States faces a potential financial reckoning if it continues on its current fiscal path without achieving stronger economic growth. Speaking on The David Rubenstein Show, Solomon emphasized that the soaring $38 trillion national debt has reached alarming levels.

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‎Goldman Sachs CEO David Solomon warns U.S. debt nearing $38 trillion poses major risks, urging growth over tax hikes to avert crisis.

‎Al Drago/Bloomberg via Getty Images

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‎During the conversation, Carlyle Group co-founder David Rubenstein asked Solomon about the growing national debt, noting the staggering size of the figure. Solomon responded that many financial leaders are increasingly concerned—not only about the debt itself but also about the rapid pace at which it has expanded over the past five years. He added that continuous fiscal stimulus has become deeply ingrained in democratic economies, contributing to a debt level that has tripled since the 2008 financial crisis.

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‎According to the Peter G. Peterson Foundation, the U.S. national debt’s jump from $37 trillion to $38 trillion in 2025 marks one of the fastest increases outside the pandemic years. The foundation’s CEO, Michael Petersen, described the current approach of “budgeting-by-crisis” as unsustainable for a leading global economy.

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‎Solomon projected that the total debt could climb “into the low forties” if the government continues refinancing at present rates. He outlined that sustainable economic growth, rather than tax increases, represents the most viable path forward. A 3% growth rate, he explained, would make a “monstrous” difference compared to the current 2% trajectory in managing debt obligations.

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‎The investment bank chief pointed to several factors that could drive higher growth, including rapid technological adoption and increased infrastructure investment. He cited projections showing that major corporations plan to spend approximately $350 billion this year on infrastructure, which could boost productivity and employment. Solomon also noted a positive shift in regulatory approaches, with policymakers focusing more on effective and necessary regulations.

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‎Throughout 2025, Solomon has expressed optimism about artificial intelligence as a long-term growth driver, though he has remained cautious about speculative excess in parts of the stock market. At a conference in Turin, he acknowledged that capital may be overextended in certain sectors, but said it remains uncertain how these dynamics will evolve.

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‎On the broader economic outlook, Solomon maintained that the near-term U.S. economy remains relatively stable, citing a low probability of recession. He underscored the importance of adaptability among business leaders amid shifting political and regulatory landscapes and reaffirmed his support for the Federal Reserve’s independence, which he described as a cornerstone of global financial stability.

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‎Other prominent business figures have echoed concerns over America’s rising debt burden. Bridgewater Associates founder Ray Dalio has repeatedly compared the growing national debt to “plaque” in an economic system that could lead to an “economic heart attack” if unchecked. Beazer Homes CEO Allan Merrill also criticized the broader tendency to defer fiscal responsibility, pointing out the financial pressures facing industries such as housing.

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‎Solomon concluded by stressing the importance of maintaining confidence among those financing U.S. debt. He warned that if borrowing continues to escalate, the responsibility for addressing the nation’s fiscal challenges will increasingly fall on Americans themselves.