US national debt has more than doubled over the past decade, reaching a record $40.05 trillion, according to the Treasury Department.
The increase has been driven by high government spending under the Trump (2017 to 2021 and 2025 to present) and Biden (2021 to 2025) administrations, along with rising interest payments that add to the debt.
The faster than expected increase has raised concerns about the government’s growing borrowing needs and the future cost of servicing the debt.
Public debt grows when government spending exceeds revenue, requiring the government to borrow money.
The CBO said the US is approaching its $41.1 trillion debt limit, while national debt is projected to reach around $64 trillion by 2036. At the same time, the government is spending more to cover its deficits, while consumers face higher interest rates and inflation.
There are also concerns about government debt and the large amounts technology companies are borrowing to develop artificial intelligence, as it remains unclear when and to what extent these investments will generate returns.
Although the public is unlikely to feel the effects immediately, difficulties in managing the debt could eventually cause problems similar to those seen during the 2008 financial crisis, according to the BBC.
Source: BBC
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