9/14/2022
US national debt nears $31T: What it means and why it’s a concern
The U.S. national debt is steadily approaching $31 trillion, according to the data by the Treasury Department.
The U.S. national debt previously hit a milestone in February 2022, when it surpassed $30 trillion for the first time.
The national debt is the “accumulation” of the federal government borrowing money by selling marketable securities to pay its deficits and the “associated interest owed to the investors who purchased these securities,” according to the Treasury Department.Â
A deficit occurs when the government spends more than it collects in revenues in a given fiscal year.
The Congressional Budget Office (CBO) warned in its latest long-term budget outlook that the rising debt could have ramifications for the U.S. economy.
With “persistently rising” debt, investors could lose confidence in the federal government’s ability to pay off its debt, which could result in interest rates or inflation suddenly rising, according to the CBO.Â
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