The national debt of the United States has surpassed $30 trillion
Key Takeaways:
- According to recent data released by the US Treasury Department on Tuesday, the country's national debt has surpassed $30 trillion, a new high.
- One of the reasons for Washington's rapidly rising public and intragovernmental debt is increased government spending in response to the coronavirus disease pandemic.
As per the recent data released on Tuesday by the US Treasury Department, America's national debt has reached a new high of over $30 trillion, setting a new record. Financial experts cited by American media outlets such as CNN and Axios disagree on "how much debt is too much" and how serious of a problem this is for the country.
Still, they all agree on one thing: the latest debt milestone arrives at a delicate transitional time for the US fiscal and monetary policies when borrowing costs are expected to rise and have broader economic consequences.
As per the US Treasury Department data, the total public debt outstanding as of January 31 was $30.1 trillion, up nearly $7 trillion from the amount owed to lenders in late January 2020, just before the pandemic struck the economy.
Increased govt spending amid the coronavirus disease (Covid-19) pandemic is one of the reasons for Washington's rapidly rising pile of public and intragovernmental debt. As per CNN, the federal govt borrowed nearly $7 trillion from international investors led by Japan and China during this time (since the end of 2019), which will have to be repaid at some point.
Another reason cited by financial experts in the United States is the gradual stockpiling of national debt ever since the 2008 financial crisis, which occurred nearly a decade before the pandemic.
The outstanding national debt of the US was $9.2 trillion in December 2007, just as the global economic downturn known as the Great Recession began. According to CNN, by the time Donald Trump was elected President of the United States, the country's national debt had risen to $20 trillion.
Congress also authorized trillions of dollars in global epidemic programs to help small businesses, unemployed workers, their families, and other groups during the Biden administration.
Meanwhile, according to The Wall Street Journal, the US Federal Reserve may soon begin to raise short-term interest rates from practically 0 to combat inflation, which is at its top level in nearly four decades.