The debt burden on America, the world’s most powerful country, is continuously increasing. There is also a danger of the American economy destabilizing due to this. While giving loans and helping others, America’s own condition has become weak. American debt has been continuously increasing during the tenure of President Joe Biden. According to statistics, at present the total national debt of the federal government in America has reached a record high of $ 34,000 billion. This level of debt shows that the government will have to face many challenges on the political and economic front in the coming years to improve the country’s balance sheet.
The US Finance Department has released a report on the country’s financial condition on Tuesday. This is going to create tension for the politically divided country. According to the report, without the annual budget, some part of the government’s work may come to a standstill. Republican lawmakers and the White House agreed in June last year to temporarily lift the country’s debt ceiling, averting the risk of a historic default. This agreement will run till January 2025. America’s national debt has increased much more rapidly.
Debt could jeopardize American security
The Congressional Budget Office in January 2020 had projected the gross federal debt to reach $34 trillion in fiscal year 2028–29. But due to the Covid pandemic that started in 2020, debt has reached this level several years earlier than expected. The national debt currently does not appear to be a burden on the US economy, as investors are willing to lend to the federal government. This debt allows the government to continue spending on programs without raising taxes. However, analysts say this debt path could put many major programs like national security, social security and health at risk in the coming decades. (AP)