Ken Griffin of Citadel: “It is irresponsible for the U.S. government to incur a deficit of 6.4% when unemployment is hovering around 3.75%. We must stop borrowing at the expense of future generations"

Hedge fund mogul Ken Griffin has criticized the "irresponsible" U.S. government for allowing the national debt to swell to $34.6 trillion and rising.

In his year-end 2023 letter to investors, the Citadel CEO stated: "The surging U.S. public debt is a growing concern that cannot be overlooked."

Total U.S. debt has more than doubled since 2013 and has increased by nearly $3 trillion since the government suspended the debt ceiling in June 2023—avoiding a potential first-ever default with just two days to spare.

The country's financial troubles have become one of the most prominent political issues in the lead-up to the November presidential election—and influential figures like Griffin have not hesitated to voice their opinions on the matter.

"We must stop borrowing at the expense of future generations," wrote Griffin, whose net worth is estimated at $35 billion by Forbes.

"The Western world urgently needs a significant increase in productivity growth as the burden of rising government debt and entitlement spending strains almost every major economy."

America's ongoing debt crisis is the result of a mismatch between federal spending and revenues.

Griffin cited data from the Congressional Budget Office (CBO), which revealed that the U.S. government incurred a total deficit equivalent to 6.2% of gross domestic product (GDP) in 2023. The government also spent 2.4% of GDP on national debt interest payments alone.

"If current laws governing taxes and spending generally remained unchanged, the federal budget deficit would increase significantly in relation to gross domestic product over the next 30 years," the CBO projects. This could have significant economic and financial consequences.

The CBO explains: "Among its other effects, it would slow economic growth, drive up interest payments to foreign holders of U.S. debt, heighten the risk of a fiscal crisis, increase the likelihood of other adverse outcomes, and make the nation’s fiscal position more vulnerable to an increase in interest rates."

One area of government spending that Griffin highlighted as a major strain on the U.S. economy is entitlements—like Social Security, Medicare, Medicaid, Unemployment Insurance, and other social welfare programs.

Social Security currently accounts for 22% of government spending, according to U.S. Treasury data. It is the largest category of federal spending, alongside health care—and it has become a major battleground, with Republican politicians constantly calling for cuts.