The United States begins the fiscal year with a record $31 trillion in debt

A US Treasury report released Tuesday said the country’s gross national debt has reached $31 trillion. The country’s gross national debt exceeded $31 trillion, according to a report by the US Treasury Department, which tracks the country’s daily financial activities, and was released on Tuesday.

The debt numbers are hitting a fragile economy with high inflation, rising interest rates and a strong US dollar. The debt numbers are approaching the statutory ceiling of nearly $31.4 trillion, an artificial limit imposed by Congress on the US government’s ability to borrow.

The so-called Deflation Act, which aims to curb 40 years of high price increases fueled by various economic factors, was recently signed into law by President Joe Biden, who praised his administration’s efforts to reduce the deficit this year. But economists say the latest debt figures are cause for concern. You can check the latest news on our Lee Daily website.

According to a Princeton economist Owen Zidar, rising interest rates will compound the country’s mounting debt problems and raise the cost of debt itself. To fight inflation, the Federal Reserve has raised interest rates five times this year.

The debt, according to Zidar, “it should encourage us to look at some tax policies that almost made it through the legislative process but didn’t get enough support,” such as raising taxes on the wealthy and closing the carried interest loophole, which allows money managers to treat their income as capital gains.

The US starts the new fiscal year with a record debt of $31 trillion
The US starts the new fiscal year with a record debt of $31 trillion

If you haven’t worried about your debt before, Mason said, “I think the point is that you should be, and if you were, you should be even more concerned.”

The Congressional Budget Office released a report on America’s debt burden earlier this year. The 30-year forecast warns that if the problem is not addressed, the debt will soon soar to new highs, threatening the US economy.

According to the administration’s mid-session review in August, this year’s budget deficit will be nearly $400 billion smaller than projected in March. That’s big because of higher-than-expected revenue, lower costs and an economy that has recovered all the jobs lost during the multi-year pandemic.

According to the Office of Management and Budget, this year’s deficit will decrease by a total of $1.7 trillion, making it the largest reduction in the federal deficit in American history.

“This is a new record that no one should be proud of.” said Maya McGuinness, president of the Committee for a Responsible Federal Budget, in an emailed statement Tuesday.

In the previous 18 months, according to MacGuineas, “we’ve seen inflation rise to a 40-year high, interest rates rise to combat that inflation, and a lot of legislative and executive action that disrupts the budget.” dependent on debt.”

A representative of the Ministry of Finance could not be reached for comment.

It took our country 200 years to accumulate its first trillion dollars of national debt. Since the epidemic, we’ve been adding at a rate of 1 trillion practically every quarter, according to Sung Won Son, an economics professor at Loyola Marymount University.

He said that increased government spending and the money supply would lead to higher inflation in the “near future”.

Final Thoughts:

The US national debt exceeded $31 trillion for the first time. This is a major milestone that comes at a time of historically high inflation, rising interest rates and growing economic uncertainty. On Monday, the country’s total public debt was $31.1 trillion, according to Treasury data released on Tuesday.

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