Can the U.S. just grow its way out of debt?

Back in August, the government accrued more than $40 trillion in debt obligations, which is one of the reasons there has been so much agita in the bond market.

In response, Treasury Secretary Scott Bessent has suggested it might be possible for the country to “grow” its way out of debt. Earlier this month, Bessent spoke at Southern Methodist University’s Cox School of Business, when he said, “with 3% growth, we grow our way out of this.”

Is it really that simple? Benn Steil, the director of international economics at the Center for Foreign Relations, decided to crunch the numbers.

“If you go back to the year 2000, we only hit the 3% growth mark in five calendar years,” Steil said. “So, it would be a a pretty impressive thing if the United States were able to consistently, going forward, achieve 3% growth.”

“Marketplace” host Kai Ryssdal spoke to Steil about the national debt, and what it might take to deal with it.

To listen to their conversation, hit the “play” button at the top of the page.