New Delhi: The debt of America, the country with the world’s largest economy, has reached 35.83 trillion dollars. Every citizen of the country has a debt of $106,132 i.e. ₹84,30,591. This debt per taxpayer has reached $271,888. In October last year, America’s debt was $33.68 trillion. The debt of America, the world’s largest economy, has increased six times in the last 24 years. In the year 2000, America had a debt of 5.7 trillion dollars, which reached 12.3 trillion dollars in 2010 and 23.2 trillion dollars in 2020. According to the budget documents of the US Congress, the country’s debt is estimated to reach 54 trillion dollars in the next decade. In just three months it has increased by more than one trillion dollars. This is approximately 125% of the country’s GDP. In the last three years alone, the country’s debt has increased by more than $10 trillion. The situation has become such that America has to spend 1.8 billion dollars every day in payment of interest. The government has to pay more than $1 trillion annually in interest alone. That means 23% of federal tax revenue is going to pay interest.
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country’s debt
The country’s debt has emerged as a major issue in the US presidential elections. Government’s earnings are decreasing and expenditure has increased. According to experts, this is not a good thing for America’s economy and national security. If debt continues to increase like this, America’s debt-to-GDP ratio may reach 200% in the next few years. The country’s debt will reach double that of the economy. If this happens then America will die as soon as the debt is repaid.
Due to this, the government will have to spend more money in paying interest than the total expenditure on research and development, infrastructure and education. Due to this the government may have to cut expenditure on social security. The concern is that America’s debt is increasing at a time when the country’s economy is in good shape and unemployment is low. Generally, when the economy is weak, the government increases expenditure to boost growth.
Interview: Understanding America’s Soaring National Debt
Editor (Time.news): Welcome to Time.news! Today, we have the pleasure of speaking with Dr. Linda Thompson, a renowned economist and expert on fiscal policy. Dr. Thompson, thank you for joining us to discuss an alarming topic—America’s soaring national debt, which has now reached an astonishing $35.83 trillion.
Dr. Thompson: Thank you for having me! It’s a crucial issue that affects not only American citizens but also the global economy.
Editor: Let’s dive right in. The figure of $35.83 trillion is staggering. What do you think led to such a monumental increase in the national debt?
Dr. Thompson: There are several factors at play. Over the past two decades, we’ve seen a consistent increase in spending, particularly during economic downturns. For instance, stimulus packages during the COVID-19 pandemic were necessary to support the economy but added significantly to the debt. In addition, tax cuts and rising healthcare costs contribute to the deficit, creating a cycle where borrowing becomes the only option to bridge the gap.
Editor: You mentioned a cycle—could you elaborate on how this cycle is impacting taxpayers?
Dr. Thompson: Certainly. As of now, each citizen carries a debt of $106,132. For taxpayers, that figure rises to $271,888. This means that the burden isn’t just a theoretical number; it translates to higher taxes in the future as the government needs to address this debt. Individuals may also face reduced public services and increased interest rates as creditors demand more as debt levels rise.
Editor: The scale of this debt is unprecedented. More than six times what it was 24 years ago! How do you foresee this trend continuing, based on current projections which suggest the debt could reach $54 trillion soon?
Dr. Thompson: If current trends continue without significant policy changes, reaching $54 trillion in the near future is very plausible. The question is whether lawmakers will prioritize tackling this issue. Given the current political climate, where bipartisan agreement is often lacking, significant reform appears challenging.
Editor: That sounds quite concerning. For citizens who are becoming increasingly aware of their financial responsibilities, what measures should they advocate for to address this rising debt?
Dr. Thompson: Advocacy for prudent fiscal policies is essential. Citizens should demand transparency in government spending and push for a balanced budget amendment. They can also encourage their representatives to prioritize structural reforms—like entitlement reforms and cutting unnecessary spending—rather than merely increasing the debt ceiling every time we face a deficit.
Editor: With the latter point in mind, can you briefly touch on the potential consequences if this national debt crisis continues to escalate without intervention?
Dr. Thompson: The consequences could be dire—from higher inflation rates and interest on borrowing to reduced investment in public services. Over time, excessive debt can lead to a loss of trust in US fiscal responsibility on the global stage, affecting our currency strength and economic standing.
Editor: Dr. Thompson, your insights have been incredibly enlightening. Lastly, what message would you like to share with our readers regarding the national debt?
Dr. Thompson: I’d like to emphasize that while debt can be a tool for growth when used wisely, unchecked borrowing poses serious risks. As informed citizens, it’s imperative we engage in discussions around this topic, pushing for solutions that promote sustainable economic growth. The future of our economy—and indeed our quality of life—depends on it.
Editor: Thank you, Dr. Thompson. This has been a thought-provoking conversation. We appreciate your expertise in unpacking such a pivotal issue for our readers.
Dr. Thompson: Thank you for having me. It’s been a pleasure discussing these crucial matters with you!