In a significant milestone, the US federal government’s total public debt has exceeded $35 trillion for the first time, reigniting concerns about the sustainability of the nation’s fiscal policies.
As of Friday, the latest figures from the Daily Treasury Statement, published by the Treasury Department, reveal that the total public debt has reached $35 trillion.
This figure reflects data updated at the close of each business day, based on the previous day’s financial records.
This new high comes just seven months after the national debt crossed the $34 trillion mark in December 2023.
The US debt had previously surpassed $33 trillion in September 2023, marking a troubling upward trend in recent months.
Experts & Public Figures Alarmed As US National Debt Exceeds $35 Trillion
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, criticized the ongoing borrowing trend, stating, “The borrowing just keeps marching along, reckless and unyielding. Despite the mounting risks and clear warning signs, these alarm bells appear to be ignored.”
MacGuineas emphasized the need for urgent action, asserting, “We must confront the debt issue seriously and without delay. Election years should not be a reason to overlook the pressing dangers posed by our mounting debt.”
The Peter G Peterson Foundation, which addresses long-term fiscal challenges, reported that the $35.001 trillion national debt translates to nearly $104,000 per American.
The foundation attributes this growing debt to structural factors such as an aging population, escalating healthcare costs, and a tax system that fails to cover government obligations.
Desmond Lachman, a senior fellow at the American Enterprise Institute and former International Monetary Fund official, warned of the unsustainable trajectory of the US budget deficit.
He however noted that this dangerous trajectory raises serious concerns about the future of the dollar and long-term inflation.
Economists are voicing increasing alarm over the debt situation. E J Antoni, a research fellow at the Heritage Foundation, highlighted that interest payments on the national debt now consume 76% of all personal income taxes collected by the government.
Meanwhile, public figures are also weighing in on the crisis.
Billionaire Elon Musk recently expressed his concern via social media, stating, “America is going bankrupt.”
Larry Fink, CEO of BlackRock, urged a global focus on the deficit issue, commenting, “This is a message for not just the US but every country. Rising deficits are not being addressed adequately. The US has the largest and fastest-growing deficits in the world, and we need to find ways to mitigate their impact on the economy, interest rates, and inflation.”
