What Could Actually Fix the US $38 Trillion National Debt?

It’s been several days since the US national debt surged past $38 trillion, igniting heated discussion online both among the general population and economists. On several subreddits, users are weighing in, with ideas ranging from radically practical to politically naive, but highlighting nonetheless just how divided public sentiment is around one of America’s biggest fiscal challenges.

Reddit’s Prescriptions: Tax, Cut, Repeat

Not surprisingly, the r/economy subreddit was the most active one when it comes to this topic, prompting a lot of community members to share their thoughts (and frustrations as well). For instance, one top-voted comment laid out a fairly blunt prescription, saying: “First, you have to balance the budget and not allow to ‘overspend’. Then, you need to raise taxes, probably a specific tax dedicated to reduce the debt.“

Another commenter echoed this by calling for cuts to the military. However, this remark transitioned to another debate, with one user indicating that DOD spending is only about 20% of the total federal budget, which suggests that slashing the military alone won’t be enough.

The headline sparked a slew of posts and comments on r/CoinEdition_com, with users proposing more debt issuance or more borrowing to handle the problem.

One of the more lengthy comments from that subreddit was from a user who argued that even eliminating all major social programs (Medicaid, food stamps, and so on) would only save about $1.2 trillion annually. With a current deficit of $1.8 trillion and high interest costs, the US would still run a $600 billion annual deficit, causing the debt to continue growing.

The comment outlined a plan to generate sizable new revenue by taxing extreme wealth and reversing past tax cuts, including a reversal of post-Eisenhower era tax cuts.

Interestingly, this opinion is widely shared on Reddit – the way to fix the national debt is by making the richest people and companies pay much higher taxes, not by cutting government spending.

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Frustration is prevalent

Reddit users aren’t just debating policy, since many are venting frustration, and it’s not hard to see why. A fair share is calling attention to spending and the recent events with Argentina. A few posters sarcastically said: “Trump is winning again. Totally owned the libs when he gave Argentina 40 billion of our tax dollars.” or “We just pushed 40B to Argentina … we apparently have plenty of money floating around to pay off the debt.”

Many Redditors believe that money is being misallocated and that debt is ballooning not because of a lack of resources, but because of political choices.

According to fiscal experts and Treasury data, the US’ debt burden now sits at about 125% GDP. Meanwhile, as the Peter G. Peterson Foundation notes, interest payments on that debt are among the fastest-growing components of the federal budget, thus limiting flexibility.

Related: US Commerce Department to Publish GDP Data On-Chain

Reddit’s ideas aren’t enough, but still matter

While ideas such as tax hikes for the rich, military cuts, or issuing more bonds carry political appeal, there are big challenges in their implementation. Tax hikes, including the idea of a dedicated levy for debt reduction, tend to face strong public resistance and rarely advance without wide political agreement.

Also, while cutting the defense budget is a common suggestion, even a substantial reduction may be insufficient to address a multi-trillion-dollar shortfall.

Despite the practical hurdles, the online debate shows that everyday people are closely watching the nation’s finances. It seems a lot are worried about the country’s economic future and, as such, are loudly calling for major changes and more responsible leadership.

That said, per policy experts and research, certain ideas could be considered as more sensible and/or realistic to address the national debt. These include:

• Combining tax increases with targeted spending cuts (especially in non-defense discretionary spending) and entitlement reforms, mirroring proposals by economists like Riedl
• Establishing a high-level, cross-party committee modeled on the 2010 fiscal commission, empowered to propose sustainable, long-term solutions that Congress would then be obligated to vote on
• Pass a law that forces the government to keep the debt under a specific limit relative to the size of the economy, making sure all future administrations are held accountable
• Prioritize economic expansion through strategic investments in infrastructure and human capital, while simultaneously enforcing strict spending controls. Experts warn that you can’t just grow your way out of a debt this large.

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Could crypto be a hedge against America’s growing debt crisis?

As the US debt climbed to $38 trillion, some people, especially crypto enthusiasts, pointed toward Bitcoin and other cryptocurrencies as potential hedges against what they see as inevitable dollar debasement. The logic is simple: if Washington keeps borrowing and printing to cover deficits, the dollar’s long-term value could erode. As a result, scarce and decentralized assets like Bitcoin might benefit.

Still, experts caution that crypto is not a perfect inflation hedge. While Bitcoin’s capped supply offers theoretical protection against currency dilution, its short-term volatility often undermines that role. Yet, as faith in government spending wanes and deficits balloon, more investors appear willing to treat Bitcoin less as a speculative asset and more as a monetary insurance policy.

Related: US National Debt 2025 Hits $38 trillion: Will Bitcoin be the best hedge against dollar debasement in 2025?

Loud voices, few easy answers

In the end, debates on Reddit regarding the $38 trillion national debt represent more than just keyboard economics. They show a real and deep public worry about how tax money is used, how much is spent on the military, and the quality of political leadership.

While users suggest all kinds of fixes, from taxing the rich to taking on more debt, real answers will probably need a balanced mix of different ideas. That means bipartisan coalitions, institutional reforms, and long-term thinking, which seems to be all too rare in Washington these days.

If the US is going to escape this debt spiral, it may need to start with loud, persistent voices demanding accountability, even if not everyone agrees on the method.

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