'We need growth'—Blackrock CEO lays out plan to pay off record federal debt

America's $35 trillion national debt could become "a big burden on the backs of our children" if the country doesn't change course, warns BlackRock CEO Larry Fink.

In an interview on CNBC's "Squawk on the Street," Fink pushed for a shift in approach. Fink's solution? Empower "unfettered businesses" to generate the revenue needed to pay down the debt.

"We need growth. And we're going to get growth from the private sector, we can't rely on public deficits anymore," Fink said.

Fink calls for "unbound" private sector growth

There are generally two schools of thought on how to address the debt issue: implementing spending cuts or fostering economic growth. Fink is firmly in the growth camp, pushing for expansion rather than austerity measures.

Instead of calling for belt-tightening to solve the debt crisis, Fink’s advocating for a spending spree—of a kind.

He wants to unleash the full power of American business to grow the economy out of debt. He argues that America's "dynamic, capitalistic system" is the key.

"We have great companies, we have great ingenuity, great technology—let it unbound, let it go, create great jobs, create opportunity, and we'll have a rising equity market that will really fuel this opportunity," Fink explained.

This approach sets Fink apart from many of his peers.

While most leaders shy away from discussing the $91 trillion global debt, Fink addresses it head-on. His focus on private sector growth offers a fresh perspective on tackling national debts without resorting to unpopular cuts or tax hikes.

Debt-to-GDP ratio approaches post-World War II levels

The BlackRock CEO's comments come as America's debt-to-GDP ratio approaches levels not seen since the end of World War II.

According to the Congressional Budget Office (CBO), this ratio is projected to rise from 99% of GDP this year to a staggering 122% by 2034, surpassing its previous high of 106% in 1946.

This ratio indicates that the debt is growing faster than the economy, which could make it harder for the nation to pay its bills in the future. The U.S. is already spending nearly $900 billion on interest payments alone, more than the country's entire defense budget.

Fink isn't alone in his concerns.

JPMorgan CEO Jamie Dimon has called the debt issue the "most predictable" crisis facing the American economy, while Federal Reserve Chair Jerome Powell believes it's "past time" to have an adult conversation about the issue.

"This is my message not just to the U.S. but to every country right now: We have rising deficits, no one is spending enough time talking about deficits, the U.S. deficits are the largest in the world—growing at the fastest rate in the world,” added Fink.