The US Federal Government Debt Surpasses $40 Trillion

BlockBeats News, August 20th, as the U.S. government's borrowing has increased at a historically unprecedented pace, the total U.S. national debt has surpassed $40 trillion. Despite Trump's promise to control government spending, the ever-expanding debt has raised concerns among investors about the U.S. public financial situation.

According to data released by the U.S. Treasury on Wednesday, on Tuesday, the U.S. federal total debt broke through the $40 trillion mark. Over the past year, its debt has increased by $3 trillion, the fastest pace in history if we exclude the period of the pandemic.

"This is like that big warning light on the car's engine," said Mark Goldwein, senior policy director at the Committee for a Responsible Federal Budget. "It doesn't mean the engine will burn out tomorrow, but it is a clear signal that things are out of control. The problem is not only the size of the debt but also how quickly we have reached this level."

Over the past two decades, U.S. national debt has skyrocketed, rising from less than $6 trillion at the beginning of the century to the current level. Massive public spending during the financial crisis and the COVID-19 pandemic exacerbated the expansion of the budget deficit. In just the past decade, the overall debt has doubled. The U.S. Congressional Budget Office projects that the publicly held federal debt as a share of GDP will exceed the historical peak of 106% set in 1946 after World War II around 2030, and further rise to 120% in 2036.