The chart of the week compares U.S. net interest payments and defense spending as a percentage of GDP. With the rise in interest rates in recent years, net interest payments on public debt have surpassed current national defense spending, raising questions about the future of government financing. The trajectory of the federal budget deficit has become a focal point for the new administration, given the potential for rising debt payments to crowd out spending on other priorities such as defense, infrastructure, and social programs. Many economists believe that a combination of revenue increases and spending cuts is the most sustainable way to reduce the deficit, with productivity gains and economic growth also playing a crucial role.