US national debt increases USD2.6 trillion in half year
Date
12/20/2023 4:06:10 AM
(MENAFN) In a concerning trend, the United States national debt has witnessed a staggering increase of USD2.6 trillion over the six-month period leading up to December, reaching a monumental USD33.8 trillion, as reported by the Treasury Department. The surge in debt, attributed to various factors such as tax cuts, stimulus programs, escalated government spending, and a decline in tax revenues, has ignited discussions about the economic ramifications of this unprecedented growth.
According to the Treasury, the national debt recently surpassed the significant milestone of USD100,000 per citizen, prompting Republican Congressman John James to express alarm and caution. James emphasized that this exponential rise should serve as a clear message to the White House, signaling that the current trajectory of reckless federal spending is reaching a critical breaking point.
Recent fiscal data highlights that as of November 2023, the cost of maintaining the national debt for the United States amounted to a staggering USD169 billion, representing 16 percent of total federal spending. Additionally, interest payments on the national debt are estimated to have surged above USD1 trillion on an annualized basis by the end of October, according to Bloomberg calculations based on United States Treasury data.
The gravity of the situation is underscored by warnings from financial institutions such as Bank of America (BoA), which predicts that public debt could skyrocket by an astounding USD20 trillion over the next decade. BoA's projections indicate a potential daily increase of USD5.2 billion in the national debt for the next ten years, potentially reaching a daunting USD54 trillion by the year 2033. These forecasts have raised concerns among economists, policymakers, and the public alike, with debates intensifying over the sustainability of such unprecedented levels of indebtedness and the potential consequences for the nation's economic stability.
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