The United States has reached a new and troubling milestone, as the national debt has officially surpassed $35 trillion.
This development marks a significant increase in the country’s financial obligations and raises serious concerns about the future of the nation’s economy.
As of Monday, the U.S. national debt stood at $35 trillion, nearly tripling over the past two decades. The debt reached $34 trillion at the end of 2023, highlighting the rapid pace at which the nation’s financial obligations are growing.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, explained the alarming nature of this trend, noting that the borrowing has been “reckless and unyielding.”
The annual federal deficit is projected to approach $2 trillion this year and could soar to nearly $3 trillion within a decade.
This represents a shift from the pre-pandemic era when annual deficits remained below the $1 trillion mark.
The financial strain is exacerbated by the rising costs of key programs like Medicare and Social Security, which are on the path to insolvency.
Additionally, the cost of interest on the national debt has doubled since President Joe Biden took office and is expected to become the largest federal expense, surpassing spending on national defense and entitlement programs.
The Congressional Budget Office (CBO) has warned that the debt held by the public is expected to rise from 99% of the gross domestic product (GDP) this year to 122% of GDP by 2034.
The federal budget deficit for fiscal year 2024 is estimated to be nearly $2 trillion.
This escalating debt situation has prompted calls for action from both Republicans and some centrist Democrats.
Republicans have long advocated for curbing government spending, arguing that the current debt crisis is a result of excessive expenditure rather than insufficient taxation.
House Budget Committee Chairman Jodey Arrington echoed the sentiments of former President Ronald Reagan, stating, “We don’t have a trillion-dollar debt because we haven’t taxed enough. We have a trillion-dollar debt because we spend too much.”
The current fiscal predicament has led to discussions about forming a bipartisan fiscal commission to address the issue.
House Speaker Mike Johnson and other lawmakers have proposed creating a panel composed of Republican and Democratic members of Congress, along with external experts, to develop recommendations for stabilizing the debt-to-GDP ratio.
However, political challenges remain, as many lawmakers are hesitant to support measures that could be perceived as cuts to popular programs like Social Security and Medicare.
The White House has countered Republican criticism by pointing to the debt increase during former President Donald Trump’s administration, largely attributed to the pandemic.
The Biden administration has proposed raising taxes on the wealthy to reduce the deficit by $3 trillion, while criticizing Republican plans for potentially exacerbating the debt with additional tax cuts.
As the U.S. approaches another election cycle, the issue of the national debt and fiscal responsibility is likely to be a focal point of political debate.