PWBM warns U.S. federal debt could hit an unsustainable 210% of GDP within about 20 years

The Penn Wharton Budget Model (PWBM) warns U.S. federal debt could reach an unsustainable ceiling of about 210% of GDP in roughly 20 years, driven by aging-related spending obligations and health-care costs that outpace broader economic growth. It projects the Social Security trust fund could be depleted around 2032, at which point the program would be able to pay only about 83% of scheduled benefits. The analysis does not point to specific companies or commodities, but it highlights accelerating, system-wide fiscal risks that could prompt markets to reprice U.S. Treasury credit, according to PWBM.