America's never had such high national debt heading into an economic shock. We need a 'break glass' plan, think tank warns | Fortune

"The country is almost certain to enter the next shock more indebted than we have ever been before, which may significantly hamper our ability to marshal an appropriate response. The U.S. has never experienced an economic shock as indebted as we are today. This situation leaves the U.S. immensely vulnerable."

"Our dismal fiscal outlook, in combination with lingering inflationary pressures and ongoing Treasury market volatility, makes crafting any response to a potential future economic shock extremely difficult. Policymakers are woefully underprepared to handle the next recession or financial shock."

"When the dot-com bubble burst in the early 2000s, U.S. debt stood at just 34% of GDP and the federal government was running a surplus. When the 2008 financial crisis hit, debt was 35% of GDP. When COVID-19 arrived, it was 79% of GDP. Today, the debt sits at roughly 100% of GDP."

The United States faces unprecedented financial vulnerability as national debt reaches 100% of GDP, matching levels unseen since World War II. The Committee for a Responsible Federal Budget warns policymakers are woefully underprepared for the next recession or financial shock. Unlike previous crises—the dot-com bubble occurred at 34% debt-to-GDP and the 2008 financial crisis at 35%—the country now enters potential emergencies at historically high debt levels. This fiscal constraint severely hampers the government's ability to mount an appropriate crisis response. The CRFB calls for Congress to develop a prenegotiated emergency blueprint, termed a "Break Glass Plan," ready for immediate deployment during crises. Compounding challenges include dismal fiscal outlooks, lingering inflationary pressures, and Treasury market volatility, making crisis response formulation extremely difficult.

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