Plus, Trump's ICC sanctions and what DeepSeek means for AI competition.
| Assessing the risks and costs of the rising US federal debt The federal debt, measured against the size of the U.S. economy, is at levels not seen since World War II. Without changes in tax and spending laws, it is projected to climb steadily and indefinitely, leading some analysts to warn of a pending crisis. In a new paper, Wendy Edelberg, Ben Harris, and Louise Sheiner examine the various channels through which debt can affect the economy to assess the risk that elevated debt will lead to a fiscal crisis. |
| A closer look at the data Debt reached 98% of gross domestic product (GDP) in 2024—close to its post-WWII peak of 106% in 1946—and is projected to continue climbing steadily, reaching 166% by 2054. |
| More research and commentary How DeepSeek presents an opportunity for America's AI leadership. "If the past is prologue, the DeepSeek development will be seized upon by some as rationale for eliminating domestic oversight and allowing Big Tech to become more powerful. Such a response is exactly the opposite of what America needs. If anything, DeepSeek proves the importance of protecting American innovation by promoting American competition," writes Tom Wheeler. ICC sanctions will hurt, not help, the United States. Last week, President Trump signed an executive order sanctioning the International Criminal Court, accusing it of "illegitimate and baseless actions" targeting the U.S. and Israel. Kelebogile Zvobgo argues that sanctions against the court’s officials and partners haven’t worked in the past and will undermine U.S. credibility abroad. |
| About Brookings The Brookings Institution is a nonprofit organization based in Washington, D.C. Our mission is to conduct in-depth, nonpartisan research to improve policy and governance at local, national, and global levels. If you were forwarded this email, sign up for the Brookings Brief to stay updated on our latest work. |
The conclusions and recommendations of any Brookings publication are solely those of its author(s), and do not reflect the views of the Institution, its management, or its other scholars. |
|
