The United States’ national debt has surpassed $35 trillion for the first time in history. According to data from the Treasury Department, the total public debt balance reached $35 trillion on July 28. This amount equates to $104,000 per American and $266,000 per household. The pace of debt accumulation is quickening, with the total rising from $34 trillion in December last year to $35 trillion in just seven months.
Experts point out that structural factors such as an aging population, rising healthcare costs, and insufficient tax revenue are the leading causes of debt increase. Moreover, government spending expansion in response to the 2008 financial crisis and the COVID-19 pandemic, along with tax cut policies, has further accelerated the rise in debt. Notably, the 2017 tax cut policy will add $22 trillion more to the debt by 2034.
The increase in debt can have several negative impacts on the economy. The government’s burden of interest costs may grow, leading to reduced investments in key areas such as education and infrastructure. Furthermore, it could stifle private investment and hinder economic growth. The Congressional Budget Office (CBO) forecasts that the budget deficit for the 2024 fiscal year will reach $1.9 trillion.
Experts emphasize the need for increased tax revenue and spending cuts to restore fiscal health. However, this issue is not adequately discussed within the political sphere. Concerns are rising as 2024 presidential candidates have not proposed concrete solutions to the national debt.
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