National Debt Hits Record $39T
The United States government’s total debt surpassed $39 trillion on Tuesday, reaching a new record after increasing by about $1 trillion in less than six months, according to data released by the Treasury Department. At the same time, debt held by the public — a figure closely watched by economists — has risen above $31 trillion for the first time, according to a report from Fortune.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, described the milestone as troubling, noting that leaders from both political parties have contributed to the buildup of the nation’s debt over many years. Michael Peterson, who leads the Peter G. Peterson Foundation, warned that if borrowing continues at its current pace, the national debt could reach $40 trillion before the elections scheduled for this fall, according to the Associated Press.
The Government Accountability Office says the growing debt affects everyday Americans in several ways. Higher federal borrowing can push up interest rates, making loans for homes and cars more expensive. Businesses may also have less capital to invest, which can slow wage growth. In addition, the cost of goods and services can rise.
According to the Associated Press, the record level of debt also reflects the financial impact of several priorities during President Trump’s administration, including tax reductions, increased military spending, and expanded funding for immigration enforcement. Meanwhile, the federal government’s annual budget deficit is approaching $2 trillion, and the deficit as a share of the overall economy is now about twice the 3% of gross domestic product that many economists consider a sustainable level.
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