The United States is on the cusp of financial catastrophe as its national debt has reached an astonishing $36 trillion, with a staggering $2 trillion increase in just one year. This mounting debt poses a significant obstacle to President Donald Trump’s ambitious policy goals and threatens to stifle economic growth.
According to recent data, America’s debt-to-GDP ratio has crossed 125%, with experts predicting it could reach a catastrophic 200% in the coming years. This would mean that the national debt is twice the size of the entire US economy, forcing the government to spend more on interest payments than essential areas such as infrastructure, education, and national security.
The average American citizen now shoulders a debt burden of approximately $108,000, with the country’s debt continuing to grow exponentially. Over the past 316 days alone, the debt has risen by $6.3 billion per day, or Rs 5.32 billion.
As the government struggles to service its massive debt, interest payments are consuming an increasingly large portion of the US budget. In fact, this year’s debt servicing costs are projected to exceed $1 trillion, surpassing spending on national security. Rising interest rates have made borrowing more expensive for American households, further exacerbating the economic strain.
President Trump has established a new department aimed at reducing government spending and improving operational efficiency, but critics argue that his proposed tax reforms could worsen the deficit. His plan to cut corporate taxes from 21% to 15% would disproportionately benefit the wealthy, increasing the deficit and leaving less room in the budget for other initiatives.
As interest rates continue to rise, the cost of servicing the national debt increases, limiting the government’s ability to invest in critical areas such as infrastructure and national security. The strain on economic growth is already being felt, with higher borrowing costs affecting American consumers.
The road ahead is uncertain, and President Trump will face significant challenges in addressing the nation’s debt burden while implementing his economic policies. With bipartisan agreement elusive, the fate of America’s financial future hangs precariously in the balance.
Source: The Economic Times
