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US national debt now tops $31 trillion for the first time ever — here's who the...

 2 years ago
source link: https://finance.yahoo.com/news/us-national-debt-now-tops-210000112.html
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US national debt now tops $31 trillion for the first time ever — here's who the country owes

Lauren Bird
Thu, October 6, 2022, 6:00 AM·4 min read
US national debt now tops $31 trillion for the first time ever — here's who the country owes
US national debt now tops $31 trillion for the first time ever — here's who the country owes

The gross national debt in America has hit new heights, surpassing $31 trillion, according to a U.S. treasury report released this week.

If you find that hard to wrap your head around, it basically boils down to more than $93,000 of debt for every person in the country, according to the Peter G. Peterson Foundation.

And with the dramatic rise in interest rates over the past few months — the Fed funds rate is currently between 3% and 3.35% — the national debt will be growing at a rate that makes it even harder to ignore.

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The last couple of years have been expensive

A deficit is what happens when the government spends more money than it brings in through taxes — and the last couple of years have been expensive.

Several large bills with hefty price tags have been approved since the start of the pandemic, including the American Rescue Plan Act, which cost $1.9 trillion, and $750 billion for student debt relief, all adding to the deficit, which then adds to the debt.

And though the Inflation Reduction Act, which was passed in August, is expected to reduce the deficit by $240 billion, policies and programs brought in by the Biden Administration are expected to add trillions more over the next decade.

The Committee for a Responsible Federal Budget estimates that $4.8 trillion will be added to the deficit by 2031.

“Excessive borrowing will lead to continued inflationary pressures, drive the national debt to a new record as soon as 2030, and triple federal interest payments over the next decade — or even sooner if interest rates go up faster or by more than expected,” says the CRFB.

Read more: Do you fall in America's lower, middle, or upper class? How your income stacks up


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