In an unprecedented fiscal pattern, the United States’ national debt is escalating rapidly, with the velocity of debt accumulation rising by $1 trillion every 100 days.
The debt surpassed $34 trillion on Jan. 4. Financial analysts are noting the speed at which the country’s debt burden has been growing — a stark acceleration that could carry significant implications for the economy.
To put the new rise into perspective, the debt expanded to $33 trillion on Sept. 15 after having reached $32 trillion just three months prior on June 15. Before this period, it took nearly eight months for the debt to swell from $31 trillion, suggesting a significant uptick in the rate at which the government is borrowing.
“The national debt is the amount of money the federal government has borrowed to cover the outstanding balance of expenses incurred over time,” the Treasury Department said in a statement. “Simply put, the national debt is similar to a person using a credit card for purchases and not paying off the full balance each month. The cost of purchases exceeding the amount paid off represents a deficit, while accumulated deficits over time represents a person’s overall debt.”
The soaring debt has affected America’s credit rating. In November, Moody’s Investors Service lowered the rating from “stable” to “negative,” citing the national debt and growing budget deficit.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability,” the agency said.
Another rating house, Fitch, also cut the federal government’s credit rating last year from AAA to AA+, citing “fiscal deterioration over the next three years.”
Please read our comment policy before commenting.