An expert has issued a stark warning as the United States’ national debt balloons to an astonishing $38 trillion, according to data from the US Treasury Department.
Initially recorded at $34 trillion in January 2024, the national debt escalated to $35 trillion by July and further increased to $36 trillion in November of the same year.
This latest surge coincides with the current government shutdown, which analysts predict might become one of the longest recorded in US history.
In light of these developments, experts have expressed concern, labeling the recent climb in debt as a ‘troubling sign’.
Government shutdowns can contribute to the rising national debt due to their adverse effects on economic productivity. The BBC notes that such shutdowns can cause delays in loan and permit approvals, as well as slow down the review process for potential stock listings.
Furthermore, CBS points out that the financial burden of restarting federal programs also adds to the costs.
A recent report has assessed that the financial impact of the ongoing shutdown could be substantial.
“We estimate that each week of shutdown would reduce US GDP growth by 0.1 percentage points (ppt) in Q4 (in annualized terms), translating into a $7 billion weekly hit to the economy,” stated a report by EY Parthenon.
Meanwhile, Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented: “Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties.
“If it seems like we are adding debt faster than ever, that’s because we are. We passed $37 trillion just two months ago, and the pace we’re on is twice as fast as the rate of growth since 2000.”
On October 1, at midnight, the US federal government came to a halt after funding bills from both the Democratic and Republican parties failed to secure 60 votes in the Senate.
On October 13, House Speaker Johnson held a press conference in Washington, D.C., where he warned of ‘barreling toward one of the longest shutdowns in American history’.
The 53-year-old emphasized he ‘won’t negotiate’ with Democrats unless they pause their healthcare demands tied to the Affordable Care Act subsidies, as reported by the Associated Press.
The record for the longest government shutdown in US history occurred during President Donald Trump’s first term, lasting for 34 days.
On Friday, October 24, Trump posted on his Truth Social account regarding the nation’s wealth.
He stated: “THE UNITED STATES IS WEALTHY, POWERFUL, AND NATIONALLY SECURE AGAIN, ALL BECAUSE OF TARIFFS! THE MOST IMPORTANT CASE EVER IS IN THE UNITED STATES SUPREME COURT. GOD BLESS AMERICA!!!”