Since the outbreak of COVID-19 pandemic, America's debt has increased by nearly USD 16 trillion, marking the highest debt accumulation in the history of the country. it's Debt-To-GDP Ratio Crosses 200%, Every Citizen Now Has A Debt Of Over $100,000, It means that every citizen of America carries a debt burden of USD 108,000. It is noteworthy that, the deficit spending as a percentage of GDP has reached levels comparable to those during World War II
The debt of the world's largest economy has surged to a staggering USD 36 trillion. This CY, the debt has risen by USD 2 trillion. Over the last 316 days, the U.S. debt has increased by USD 6.3 billion daily, which is approximately Rs 5,31,94,85,78,490.
How Will the Government Reduce Spending?
* Trump is addressing the national debt issue by establishing the Department of Government Efficiency.
* The new department's goal is to reduce government spending and enhance operational efficiency.
* Elon Musk and Vivek Ramaswamy have been appointed to lead the initiative.
* Musk believes he can significantly reduce the federal budget, potentially saving billions.
* Proposed cuts include reductions in public broadcasting budgets and financial support for abortion rights advocacy groups.
■ The spiralling national debt in the U.S. has witnessed a huge increase over the past two decades, multiplying six-fold from a mere USD 5.7 trillion at the start of the millennium to an overwhelming USD 23.2 trillion by 2020.
■ According to forecasts based on U.S. Congressional budget records, we could see this debt soaring to a staggering USD 54 trillion in the forthcoming decade.
■ As of now, the national debt stands alarming at 125percent of the total GDP of the country.
■ Consequently, the U.S. government finds itself expending more than a billion dollars each day just to cover the interest on this colossal debt, indicating shrinking government revenues allied with escalating expenses.
■ The current situation is not favourable for the country's economy or national security.
■ The US government may spend more on interest payments than development, infrastructure, and education combined.
■ Notably, US debt is increasing at a time when the country's economy is in good condition.
■ This increasing debt can lead to another government shutdown. It is noteworthy that disagreements over the national debt is common between Republicans and Democrats as both parties have contributed to the growing national debt during their terms.
*In August 2023, Fitch downgraded America's sovereign debt rating from AAA+ to AAA. Moody's also stated that it may downgrade the U.S. rating. In June 2023, US came very close to defaulting on its debt, and this situation could occur again.
