This US President Increased the National Debt by Over 700%
Story by 24/7 Wall St. Staff • 20h
This US President Increased the National Debt by Over 700%
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Although the United States has carried national debt since its founding, its current level is unprecedented and unsustainable. In fact, the nation's deficits are larger than any other country in the world and are growing exponentially. Although most countries have some form of debt, the biggest issue is the debt-to-GDP ratio, which indicates whether or not the U.S. can afford to pay back its loans.
Unfortunately, this ratio is extremely high as levels of government borrowing have recently reached unsustainable levels. The U.S. has not had a balanced budget in over two decades, and the federal debt is now growing faster than the economy. Currently, the government owes nearly $34.6 trillion, a 100% increase from only 10 years ago.
With the national debt at unprecedented highs, 2024 will be the first year since at least 1940 that borrowing costs will exceed defense spending. According to the Congressional Budget Office, interest payments on the national debt are projected to hit $870 billion this year, compared to a planned $822 billion defense budget. Over the next decade, interest payments are expected to total a staggering $12.4 trillion.
While American presidents have mandatory spending obligations, such as Social Security and Medicare, they have some level of control over discretionary budgets and taxes. Still, a president's budget, along with any proposed changes to the tax code, must receive congressional approval. As a result, a president's relationship with lawmakers on Capitol Hill matters. In addition, other factors such as GDP growth, can also either help or hinder a president's budgetary goals. (These are the sitting U.S. Senators doing the most in office.)
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