America’s ‘Income Penny and Expense Rupee’ Situation: Debt So High That Paying EMIs Could Be a Struggle
The U.S., a country with one of the world’s largest and strongest economies, is experiencing a daily increase in its national debt. Following the COVID-19 pandemic, extensive government spending to recover from the crisis has led to a continuous rise in debt.
The U.S. federal government’s debt has surged from $35 trillion to $25 billion. Since 2019, there has been an increase of $13 trillion, which is three times more than India’s economy.
The debt-to-GDP ratio in the U.S. has reached 122%, marking a 19% increase over the past five years. This rapid rise in federal debt is unprecedented in American history. The situation has become so critical that the U.S. may need to cut other expenses to reduce its debt.
U.S. National Debt Increasing Every Three Months
The U.S. national debt is increasing by approximately $1 trillion every three months. On January 4th of this year, it reached $34 trillion. Previously, on September 15 of the last year, it was $33 trillion, and on June 15, it stood at $32 trillion.
It took eight months for the debt to rise from $31 trillion to $32 trillion. The federal government’s borrowing to cover its expenses is contributing to this growing debt. If this trend continues, the debt could reach 166% of the country’s GDP by 2054.
Financial Impact of Rising U.S. Debt
In the U.S., government revenue is steadily declining while expenses are increasing. Experts suggest that the continual rise in debt is detrimental to both the nation’s economy and national security. If this trend persists, the U.S. may have to pay $1.8 billion daily just in interest, which could severely drain the economy.
The government might end up paying more in interest than the total expenditure on research and development, infrastructure, and education combined. However, it’s worth noting that the country’s economy has improved since the COVID-19 pandemic, with a decrease in unemployment.