US Congressional Funding Fight , Continues as National Debt , Hits Record $34 Trillion.
In a report issued on January 2, the Treasury
Department announced that America's
gross national debt has surpassed $34 trillion. .
Associated Press (AP) reports that the
record-high debt signals impending political and economic challenges for the U.S. in the near future.
U.S. debt has emerged as a major source
of political tension, dividing Washington
ahead of a potential government shutdown
due to an inability to approve an annual budget.
AP reports that the national debt has surpassed $34 trillion
years ahead of pre-pandemic projections suggesting that
the record amount would be reached in 2029.
So far, Washington has been spending
money as if we had unlimited resources.
But the bottom line is there is no free lunch,
and I think the outlook is pretty grim, Sung Won Sohn, economics professor at Loyola
Marymount University, via Associated Press.
The gross debt includes funds that the government
owes to itself, which leads most lawmakers to rely
on the the public's total debt to assess finances. .
That figure currently stands at $26.9 trillion,
roughly the same amount as the
U.S. gross domestic product. .
In June of 2023, the Congressional Budget Office released
its 30-year outlook which estimated that publicly-held
debt will reach 181% of U.S. economic activity by 2053.
AP reports that the debt's current trajectory in the coming
decades may pose a threat to national security and major
programs like Social Security and Medicare.
AP reports that the debt's current trajectory in the coming
decades may pose a threat to national security and major
programs like Social Security and Medicare.
Looking ahead, debt will continue
to skyrocket as the Treasury expects to
borrow nearly $1 trillion more by the end
of March. Adding trillion after trillion in debt,
year after year, should be a flashing red
warning sign to any policymaker who
cares about the future of our country, Michael Peterson, Peterson Foundation CEO, via Associated Press