The gross national debt of the US federal government has set a new record, exceeding $34 trillion, according to the Treasury Department, UNN reports citing Voice of America.
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This, as noted, could create political and economic difficulties in the future when trying to fix the financial situation in America.
The national debt exceeded the $34 trillion mark several years earlier than in the pre-pandemic fiscal year 2029. However, during the pandemic that began in 2020, public debt grew faster as the US government borrowed heavily to support the economy. This was accompanied by a surge in inflation, which led to higher debt service costs.
The gross public debt figure includes the government's obligations to itself, so most policymakers operate on debt to others when assessing the government's financial position. This figure is smaller, at $26.9 trillion, and roughly equal to the US GDP.
So far, it seems that the national debt is not a heavy burden on the US economy, as investors are willing to lend money to the federal government. Such lending allows the government to continue spending money on its programs without raising taxes.
However, as noted, the trajectory of the public debt over the coming decades could pose a threat to national security and key programs, including pension and health insurance programs.