FedEx Founder Fred Smith: U.S. record debt ‘unsustainable’
FedEx founder adds his name to growing list of business leaders sounding the alarm on federal debt crisis
Economist Peter Morici breaks down what the national debt is, why it ballooned to more than $34 trillion and what it means for Americans.
FedEx founder and executive chairman Fred Smith is adding his name to the list of business leaders sounding the alarm over America's surging national debt, telling FOX News this week it is "unsustainable."
During an interview on "Special Report" Tuesday evening, host Bret Baier asked Smith for his take on the level of federal debt held by the U.S. government, which is now above $34 trillion.
Frederick Smith, chairman and chief executive officer of FedEx Corp., speaks during the U.S. Chamber of Commerce Aviation Summit in Washington, D.C., U.S., on Thursday, March 7, 2019. Smith joined "Special Report" host Bret Baier on FOX News Tuesday. … (Photographer: Anna Moneymaker/Bloomberg via Getty Images / Getty Images)
"Federal debt held by the public was 97% of GDP in 2022, projected to equal 195% of GDP by 2050," Baier noted. "Eventually, you have to turn the aircraft carrier a little bit."
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"Well, I think a lot of people are saying that," Smith responded. "The chairman of the Federal Reserve said it Sunday evening, a week ago. The head of our largest bank, I believe, JP Morgan, Jamie Dimon, has said it repeatedly, and hopefully I'm adding to the chorus and saying this is unsustainable."
A FedEx Express logo is seen on an airplane at Paris Charles de Gaulle airport in Roissy-en-France on May 25, 2020. (REUTERS/Charles Platiau / Reuters Photos)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 294.45 | +2.17 | +0.74% |
Baier then pointed to remarks Smith made during a speech at the Calvin Coolidge Presidential Foundation in December, when the FedEx founder said, "To avoid a catastrophic fiscal crisis. I fervently hope that next year, our political process produces leaders who recognize the extreme and unprecedented dangers we face in terms of our political and financial instability, not to mention military challenges around the world, which require a grand compromise and resolution of these problems."
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The host asked Smith if he is seeing those leaders as of today.
"No, quite the contrary," he replied. "The political process is really focused on the extremes of both parties."
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"No one is supporting trade, which made America great, really, since Roosevelt and his secretary of State Hull passed the first major trading bill in 1934,' Smith said. "And then we led opening the world and restored Germany and Japan, our enemies, to prosperity through trade and the American alliance system. And then on top of that, our financial capabilities to print money at will is dependent on the dollar remaining the reserve currency."
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"The so-called BRICs alliance – Brazil, Russia, India and China – have set out on a deliberate course to dethrone the dollar," Smith continued, warning, "If that happens and we can't sell our bonds, I can assure you the living standards that we all enjoy today are going to be a thing of the past."