Charted: U.S. National Debt Reaches $35 Trillion

Related stories

China Snubs U.S. Crude for Third Month, Even as Ethane Trade Restarts

China has avoided buying U.S. crude oil for three...

Super Eagles Icon Peter Rufai Passes Away at 61

By Abiola Olawale The Nigerian football community has been thrown...

Dakuku Peterside’s Beneath the Surface Book Out in October

By Abiola Olawale Masobe Books, a renowned publisher has announced...

Oil Prices Dip on Confirmation of Inventory Build

Crude oil prices opened weaker today following Wednesday’s release...

Buhari In Stable Condition – Ex-Aide Confirms

By Abiola Olawale Ahmed Bashir, ex-aide to the immediate past...

The U.S. national debt hit a new $35 trillion landmark, just halfway into 2024.

Since January, the U.S. debt pile has expanded by $1 trillion alone, moving the debt-to-GDP ratio to 98%. By 2032, the International Monetary Fund projects that this ratio could surpass 140% under current policies. Despite the looming threat to U.S. fiscal sustainability, neither Republican or Democratic parties show political incentive to address the rapid pace of borrowing.

This graphic shows the ballooning U.S. national debt, based on figures from the U.S. Department of the Treasury’s Fiscal Data website.
A New Milestone is Reached

Today, the U.S. national debt is equal to the GDP of China, Japan, Germany, India, and the United Kingdom combined.

Since 2020, the U.S. has added $11.8 trillion to its national debt, accounting for more than one-third of the current total. For perspective, government debt stood at $9.2 trillion in 2008 and in 1981, it crossed the $1 trillion mark for the first time.

Data as of July 26, 2024. Represents figures at the start of each year.

Looking at it another way, the Biden administration has added $7.2 trillion to the U.S. national debt, coming second-only to the Trump administration, at $7.8 trillion.

As a result, the cost of servicing government debt is surging. In 2024, interest costs on the national debt are forecast to reach 17% of federal spending, making it the fastest growing expense overall. These interest costs are expected to escalate further as higher interest rates drive up the cost of new borrowing.

Despite this mounting fiscal pressure, neither political party has proposed meaningful strategies to address the growing debt. This has negative consequences to the U.S. economy, since funds spent on debt interest costs are diverted away from other areas that could benefit the economy, such as infrastructure or Social Security.

Moreover, if the government can’t make interest payments, it could jeopardize the dollar’s status as the world’s reserve currency. This scenario could weaken the dollar and trigger a liquidity crisis, with broader economic impacts.

Source: Visual Capitalist

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
China Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsSuper Eagles Icon Peter Rufai Passes Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory BuildBuhari In Stable Condition - Ex-Aide ConfirmsBREAKING: Ex-President Buhari sick, hospitalised abroad2027: Abure, Usman Clash Over Peter Obi’s Rising Profile in ADC CoalitionMTN’s Dabengwa Tier III Cloud Data Centre: A New Era for West African Tech and AIGanduje: Why are they resigning?OPEC Reports a Global Oil Production Decline in 2024IMF Warns FG to Overhaul 2025 Budget to Prevent Economic Meltdown2027: Peter Obi Vows, Says ADC Coalition 'll prioritize Nigerians’ WelfareTragedy! Liverpool Star Diogo Jota Dies in Car Crash in SpainFamily Announces Burial Date of Ex-Kwara Governor, Cornelius AdebayoSex Scandal: Baltasar Engonga, Ex-Equatorial Guinea Anti-Corruption Boss Bags 18 Years
X whatsapp