The U.S. gross national debt has hit a staggering $38 trillion. This milestone comes at a complicated time, as the government is currently shut down and many federal workers are not getting paid. Shutdowns tend to stall economic activity and can lead to higher costs when programs pause and restart.
Michael A. Peterson, CEO of the Peter G. Peterson Foundation, shared a concerning insight: “We’re adding debt faster than ever. Just two months ago, we crossed the $37 trillion mark.” The rate of growth is now twice what it was from 2000 to 2021.
The longest shutdown in history lasted 35 days in 2018, costing the economy about $11 billion primarily due to reduced spending by federal employees. A recent survey showed 81% of voters consider the national debt a pressing issue. Economists warn that the rising debt could result in higher interest costs for the government, projecting payments to soar from $4 trillion in the last decade to $14 trillion in the next ten years.
David Kelly, a chief strategist at J.P. Morgan Asset Management, noted that this rising debt could shake investor confidence in the economy. Recently, the credit rating agency Moody’s downgraded the U.S. credit rating, reflecting concerns about the escalating debt, joining Standard & Poor’s and Fitch Ratings in similar actions.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, has also voiced alarm. “We’re becoming numb to our dysfunction,” she said, emphasizing the urgency of addressing fiscal challenges rather than merely discussing budgets without concrete plans. Notably, Social Security and Medicare trust funds are projected to run dry in just seven years, raising alarms about the need for immediate action.
As the national debt climbs higher, it’s clear that this issue resonates with many Americans, highlighting a critical need for productive conversations around fiscal responsibility. For further insights on national debt trends, visit the Peterson Foundation.
Source link
United States Department of the Treasury, National Debt
