America's capital crunch: Soaring debt collides with AI spending spree

AxiosAugust 21, 2026en

America is caught in a historic capital squeeze: On one side: Trillions Washington must borrow to pay for the past . On the other: Trillions the economy needs to build the future . Why it matters: The next president will inherit a fiscal reckoning decades in the making. The price it exacts — on taxes, benefits, borrowing and investment — could shape America's prosperity and power for generations. Zoom in: President Trump said in 2016 that he could eliminate what was then roughly $19 trillion in national debt within eight years. On Tuesday, the debt crossed $40 trillion, after growing by $3 trillion in the past year alone. About $32 trillion is owed to investors and other outside holders. The

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