US National Debt Surpasses $33 Trillion, Raising Concerns About Fiscal Trajectory

The US national debt has officially surpassed $33 trillion, marking a significant increase of $11.5 trillion compared to where it stood five years ago, representing a 53% increase. This milestone comes amid concerns about the country's fiscal trajectory, as Congress engages in a spending fight. The national debt has been rapidly rising, increasing by $1.51 trillion since the debt ceiling was suspended three months ago. Over the past five years, the debt has grown by 54%, reaching $32.98 trillion. The US budget report for August revealed that the year-to-date interest expense reached a record $808 billion. The total budget deficit for the first 11 months of fiscal year 2023 was $1.5 trillion, marking a $600 billion increase compared to the previous year. Economists have expressed varying opinions on the national debt, highlighting that not all debt is necessarily bad. However, concerns remain as projections indicate that US federal debt could reach $50 trillion by 2030. Despite these figures, US households are currently spending a smaller portion of their disposable income (9.6%) on debt payments compared to the peak of 13.2% in 2007. The increase in debt has led to personal interest payments also reaching record levels, with Americans paying a total of $3.3 trillion in personal interest during the first seven months of 2023. The US government's interest expenses are now roughly equivalent to what it historically spends combined on research and development, infrastructure, and education. This significant debt increase has prompted questions about the government's use of funds.

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