Washington– The national debt surpassed a record $39 trillion on Wednesday, a milestone that comes just weeks after the government’s announcement The American-Israeli war in Iran.
This unprecedented number highlights the administration’s competing priorities, from passing a massive tax bill, boosting defense spending and immigration enforcement, to reducing the debt itself – the latter. Donald Trump He promised to do so as a candidate and as president.
The Government Accountability Office identifies some of the impact of higher government debt on Americans, including higher borrowing costs for things like mortgages and cars, lower wages from businesses that have less money to invest, and more expensive goods and services. Balanced budget advocates also warn that the long-term trend of borrowing more and paying more in interest will force Americans to face a tougher fiscal trade-off in the future.
“We must recognize this alarming rate of growth and the significant financial burden we are placing on the next generation,” Michael Peterson, chairman and CEO of the Peter J. Peterson Foundation, a nonprofit created to raise awareness of America’s long-term financial challenges, said in a statement.
The trajectory of rising costs is also a source of concern. The federal debt has risen under both Republican and Democratic presidents, driven more recently by wars, widespread pandemic spending and tax cuts.
US national debt To reach $38 trillion Five months ago – and $37 trillion Two months before that.
“At the current growth rate, we will reach a staggering $40 trillion in national debt before the election this fall,” Peterson said. “Borrowing trillion after trillion at this rapid pace without an objective plan is the definition of unsustainable.”
White House economic adviser Kevin Hassett estimated Sunday that the war in Iran has cost the United States more than $12 billion so far. It is unclear when the war will end.
Representatives for the White House and Treasury Department did not immediately respond to The Associated Press’ request for comment on the debt guru on Wednesday.