National Debt Surges Past $38 Trillion, Echoing ‘Hoarding‘ Crisis, Experts Warn
WASHINGTON – The United States national debt has exceeded $38 trillion, a figure drawing increasing alarm from economists and fiscal policy analysts who warn the escalating debt poses a significant threat to the nation’s economic stability. The debt translates to over $110,000 per citizen and more than $328,000 per taxpayer.
The ratio of the national debt to the country’s gross domestic product has climbed dramatically, from under 35% in 1980 to 55.5% in 2000, and now exceeding 120%. The U.S. now allocates more funds to interest payments on the debt than to national defense - a concerning reversal.
Contributing editor at Reason magazine, Veronique de rugy, recently wrote that the Federal Reserve, beginning under Chairman Alan Greenspan in 1987, inadvertently enabled the growth of the debt by maintaining artificially low interest rates and monetizing debt. “Politicians concluded that they could borrow endlessly without suffering political consequences,” de rugy stated. This approach aligns with arguments made by modern monetary theorists, who have historically downplayed the risks of inflation.
However, the consequences are now being felt by the public, with persistently high prices despite recent efforts by President Donald Trump to curb inflation, leaving most prices higher than they were in 2019. Interest costs have surged from $372 billion annually a few years ago to nearly $1 trillion today.
the primary driver of the debt is government spending, not a lack of tax revenue. Federal tax revenues have increased substantially, rising from $2.4 trillion in early November 2012 to over $5.2 trillion this year.
Analysts emphasize that addressing the debt requires curbing spending, comparing the situation to a “hoarding problem” – one that cannot be solved by simply increasing revenue, but by reducing accumulation and discarding excess.
