‎Goldman Sachs CEO David Solomon Warns of U.S. Debt Crisis Risk, Calls for Growth-Driven Solution

‎Goldman Sachs CEO David Solomon has cautioned that the U.S. national debt, now at $38 trillion, poses a major financial risk if economic growth does not accelerate. Speaking on The David Rubenstein Show, Solomon said the nation’s fiscal path could lead to a “reckoning” without stronger expansion.

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Goldman Sachs CEO David Solomon warns the $38 trillion U.S. debt could spark a reckoning, urging growth over taxes to stabilize finances.

‎Al Drago/Bloomberg via Getty Images

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‎David Rubenstein, co-founder of Carlyle Group, noted the unprecedented scale of the debt during their discussion. Solomon responded that many business and financial leaders are increasingly alarmed by how fast the debt has grown, particularly over the past five years, and expressed doubt about the government’s ability to slow the trend.

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‎The investment bank chief explained that heavy fiscal stimulus has become embedded in modern democratic economies. He highlighted the dramatic rise in U.S. debt from around $10 trillion in 2008 to its current level, tripling in size over less than two decades.

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‎Federal data confirms that the debt rose by $1 trillion this year alone. According to the Peter G. Peterson Foundation, the increase from $37 trillion to $38 trillion represents the fastest growth rate outside of the pandemic era. The foundation’s CEO Michael Peterson criticized the government’s “budgeting-by-crisis” approach, saying it undermines long-term stability.

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‎Solomon projected that if refinancing continues at the current rate, total U.S. debt could climb into the “low forties” in the near future.

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‎Growth, Not Revenue, as the Path Forward

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‎Solomon outlined that sustainable economic growth—not higher taxes—holds the key to managing the debt burden. He said relying solely on “the revenue path” is insufficient, emphasizing that the “growth path” is far more effective in restoring balance.

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‎He explained that a consistent 3% growth rate would produce a vastly different fiscal outcome than the current 2% trend. To achieve this, Solomon pointed to the productivity potential of advanced technologies and artificial intelligence, which are rapidly transforming industries.

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‎The Goldman Sachs leader also cited strong infrastructure investment as another driver of growth, noting that major corporations are expected to spend about $350 billion on projects this year. He added that streamlined regulatory approaches that prioritize efficiency can further accelerate economic performance.

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‎Technology and Market Outlook

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‎Throughout 2025, Solomon has maintained a cautiously optimistic stance on technology’s role in shaping the economy. Speaking at a conference in Turin, he expressed uncertainty over whether parts of the stock market are in an AI-driven bubble but noted that such cycles are not unusual. He said some investments may fail to yield returns, yet innovation remains a long-term positive force.

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‎Economic Conditions and Policy Stability

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‎Solomon characterized the U.S. economy as being in “pretty good shape,” predicting a low likelihood of near-term recession. He said the mix of headwinds and tailwinds currently leans in favor of continued expansion.

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‎He also commented on political and policy volatility, describing it as a constant feature of modern governance. Business leaders, he said, must remain adaptable to evolving conditions. Solomon reaffirmed the importance of Federal Reserve independence, calling it a cornerstone of global financial stability.

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‎Broader Business Concerns

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‎Other executives share Solomon’s concern about the growing reliance on debt. Bridgewater Associates founder Ray Dalio has long warned of the potential for an “economic heart attack” if borrowing continues unchecked. Homebuilding executive Allan Merrill echoed similar frustrations, saying that deferring today’s costs to future generations reflects a broader irresponsibility in fiscal attitudes.

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‎As the national debt continues its climb, Solomon concluded that maintaining global confidence in America’s creditworthiness is critical. The challenge, he said, is that if borrowing keeps expanding, it will eventually fall on Americans themselves to confront the financial consequences.