U.S. national debt surpasses 35 trillion USD for first time

WASHINGTON, July 29 (Xinhua) — The U.S. federal government’s total public debt has surpassed 35 trillion U.S. dollars for the first time, again sparking concerns about the naiton’s escalating debt problem and its implications for the U.S. economy.
The total public debt outstanding climbed to 35 trillion dollars on Friday, according to the newly released Daily Treasury Statement released by the Treasury Department Monday. The data is updated at the end of each business day with data from the previous business day.
Just seven months ago, the U.S. national debt surpassed 34 trillion dollars in late December 2023. Three months before that, the United States reached a historic milestone by passing 33 trillion dollars.
“The borrowing just keeps marching along, reckless and unyielding,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, in a statement. “Yet despite all the risks and warning signs, these alarm bells seem to be falling on deaf ears.”
“We are going to have to get serious about the debt, and soon. Election years cannot be an exception for trying to prevent completely foreseeable dangers — and the debt is one of the major dangers we are facing,” said MacGuineas.
According to the Peter G. Peterson Foundation, a nonpartisan organization focused on addressing U.S. long-term fiscal challenges, the national debt of 35.001 trillion dollars translates to nearly 104,000 dollars of debt per person in the United States.
“Our deficits are caused mainly by predictable structural factors: our aging baby-boom generation, rising healthcare costs, and a tax system that does not bring in enough money to pay for what the government has promised its citizens,” the foundation said.
Desmond Lachman, a senior fellow at the American Enterprise Institute and a former official at the International Monetary Fund, told Xinhua earlier that “there can be no question that the U.S. budget deficit is on an unsustainable path.”
The “dangerous trajectory” poses “serious questions for the dollar” and inflation’s long-run outlook, Lachman said.
Analysts have joined the chorus of voicing serious concerns about the U.S. debt problem. Economist E.J. Antoni, a research fellow of the Heritage Foundation, reports that based on the Fed’s June numbers, interest on the national debt is the equivalent of 76 percent of all personal income taxes collected by the government.
“America is going bankrupt btw,” American billionaire Elon Musk wrote in a recent post on the social media platform X.
BlackRock CEO Larry Fink told media: “This is my message not just to the U.S. but to every country right now: We have rising deficits, no one is spending enough time talking about deficits, the U.S. deficits are the largest in the world — growing at the fastest rate in the world — and we need to be finding ways to minimize the role of the deficit on the economy, on interest rates, on inflation.” ■