NewsRescue
According to the Treasury Department, the US national debt increased by $2.6 trillion in the six months through December to reach $33.8 trillion.
Tax cuts, stimulus programmes, increased government expenditure, and decreasing tax collections, according to the Treasury, have all contributed to rising debt.
“The national debt has just exceeded $100,000 per citizen,” Republican Congressman John James stated last week. “This should send a message to the White House that this reckless federal spending is at a breaking point.”
According to the most recent fiscal data, the cost of maintaining the debt in the United States in November 2023 was $169 billion, or 16% of total federal spending.
According to Bloomberg calculations based on US Treasury statistics, interest payments on the national debt are expected to have surpassed $1 trillion on an annualised basis as of the end of October.
Bank of America (BoA) predicts that national debt will rise by $20 trillion over the next decade. According to BoA, it is expected to expand by $5.2 billion every day over the next ten years, putting it at roughly $54 trillion by 2033.
In January 2023, the United States exceeded its debt ceiling, which was legally set at $31.4 trillion. After months of Treasury warnings of a possibly calamitous default, President Joe Biden signed a bipartisan debt agreement in June that extended the limit until January 2025. This effectively allowed the government to borrow indefinitely until next year. Debt soared to $32 trillion less than two weeks after the bill was passed, and it has continued to rise ever since.
Because of the scenario, major international credit rating agencies Fitch and Moody’s have reduced their outlooks for the United States this year.
