Goldman Sachs CEO David Solomon has voiced his concern over the US’ $38 trillion national debt, joining high-profile critics like JPMorgan CEO Jamie Dimon and Federal Reserve Chair Jerome Powell in warning of a potential financial reckoning. Solomon said that the primary concern is not the sheer volume of debt, but the worsening debt-to-GDP ratio, emphasising that the solution lies in accelerating economic growth which can be possible by artificial intelligence (AI) technology.
Speaking at the Economic Club of Washington D.C. last week, Solomon pointed to the potential of AI as the factor that could make the growth strategy feasible. The investment banking leader pointed to the immense potential of AI as the factor that could make the growth strategy feasible, especially as the technology begins to drive Wall Street to new highs.
“I think we have some things that are going to give us a better opportunity to have a higher growth trajectory, particularly … technology, AI getting embedded into the enterprise and the productivity opportunity from that,” he said.
“But if we continue on the current course and we don’t take the growth level up, there will be a reckoning,” he continued.
Jamie Dimon, the CEO of JPMorgan Chase , last month also warned that the country’s national debt is unsustainable.
Goldman Sachs CEO on Donald Trump’s ‘Gold Card’
In February, President Donald Trump claimed he could entirely avert a potential debt crisis through the gold card scheme. He projected that selling one million cards would yield $5 trillion, and selling ten million cards would generate a total of $50 trillion.
Since the national debt is currently $35 trillion, Solomon stated, "that would be nice." He further noted that achieving this goal would leave a $15 trillion surplus, which could be allocated for deficit reduction or potentially more.
Speaking at the Economic Club of Washington D.C. last week, Solomon pointed to the potential of AI as the factor that could make the growth strategy feasible. The investment banking leader pointed to the immense potential of AI as the factor that could make the growth strategy feasible, especially as the technology begins to drive Wall Street to new highs.
“I think we have some things that are going to give us a better opportunity to have a higher growth trajectory, particularly … technology, AI getting embedded into the enterprise and the productivity opportunity from that,” he said.
“But if we continue on the current course and we don’t take the growth level up, there will be a reckoning,” he continued.
Jamie Dimon, the CEO of JPMorgan Chase , last month also warned that the country’s national debt is unsustainable.
Goldman Sachs CEO on Donald Trump’s ‘Gold Card’
In February, President Donald Trump claimed he could entirely avert a potential debt crisis through the gold card scheme. He projected that selling one million cards would yield $5 trillion, and selling ten million cards would generate a total of $50 trillion.
Since the national debt is currently $35 trillion, Solomon stated, "that would be nice." He further noted that achieving this goal would leave a $15 trillion surplus, which could be allocated for deficit reduction or potentially more.
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