# Fixing national debt could raise household income by $36,000

> A new study argues that tackling America's $40 trillion debt pile would boost real incomes and ease an affordability crisis that voters rank as a top concern.
- Title: Fixing national debt could raise household income by $36,000
- Summary: A new study argues that tackling America's $40 trillion debt pile would boost real incomes and ease an affordability crisis that voters rank as a top…
- Keywords: national debt, affordability crisis, committee for a responsible federal budg, inflation, household income, deficit reduction, federal reserve, scott bessent, Fixing, national, debt, raise
- Source: Fortune — https://fortune.com/2026/09/23/affordability-crisis-national-debt-income-inflation-study-committee-responsible-federal-budget
- Author: Eleanor Pringle
- Read time: 1 min
- Topics: national debt, affordability crisis, committee for a responsible federal budg, inflation, household income, deficit reduction, federal reserve, scott bessent
## Affordability tops voter concerns
A July Pew Research study found 29% of voters wanted Congressional candidates to address price increases, with another 15% citing affordability and cost of living as key issues.
## CRFB: deficit reduction cuts inflation
The Committee for a Responsible Federal Budget argues that reducing the deficit would help the Federal Reserve fight inflation, currently at 3.4% against its 2% target.

> When interest rates remain well above the zero lower bound and the economy is performing near its productive capacity, deficit reduction can reduce excess demand and slow price growth.
## Lower rates mean real savings
The committee calculated that a 1.5 percentage point rate reduction would save a family $5,800 per year on a $500,000 mortgage and $500 per year on a $50,000 car loan.
## Stable debt boosts long-term income
The Congressional Budget Office estimates that stabilizing the U.S. debt-to-GDP ratio at approximately 123% would boost real per-person income growth by 10% over three decades.
## The thirty six thousand dollar gap
Using CBO modeling, the CRFB found that with stable debt, income per person would grow by $46,500 over three decades versus $32,350 with rapidly rising debt, a difference of $14,250 annually.

> To put these numbers in context, income per person would grow by $46,500 over the next three decades, in today's dollars, with a stable debt, as opposed to $32,350 with rapidly rising debt.
## Growth advocates push alternative path
Treasury Secretary Scott Bessent argues the U.S. can grow its way out of debt imbalance, saying there is nothing magic about the $40 trillion number, as the Treasury spends $3 billion daily on interest.

> There's nothing magic about the $40 trillion number. And we can grow our way out of that.
## Key takeaway

The Committee for a Responsible Federal Budget says deficit reduction would lower inflation and interest rates, potentially adding thirty six thousand dollars to average household income over three decades.