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US public debt at record high above $22 trillion

US public debt at record high above $22 trillion

Washington, Feb 13 (IANS) America's public debt has reached a record high of more than $22 trillion, according to data released by the US Treasury Department.

The amount of the debt as of February 11 was quoted in a daily statement by the department on Tuesday.

"The national debt has now eclipsed $22 trillion, as we added $1 trillion in debt over just the last 11 months," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation, a non-partisan organisation dedicated to addressing America's long-term fiscal challenges.

 

The Congressional Budget Office (CBO) in January estimated that federal budget deficit was about $900 billion in 2019 and exceeds $1 trillion each year beginning in 2022.

Because of persistently large deficits, the public debt is projected to grow steadily, reaching 93 per cent of US gross domestic product (GDP) in 2029 and about 150 per cent of the US GDP in 2049, according to the CBO.

Former Federal Reserve Chairman Alan Greenspan has warned that the rising public debt in the US could lead to the next economic recession.

Analysts said the Trump administration's $1.5-trillion tax cut and increased government spending have fueled the rapid increase in budget deficits and public debt.

"Reaching this unfortunate milestone so rapidly is the latest sign that our fiscal situation is not only unsustainable, but accelerating," Xinhua quoted Peterson as saying.

"As we borrow trillion after trillion, interest costs will weigh on our economy and make it harder to fund important investments for our future," Peterson said.

"We already pay an average of $1 billion every day in interest on the debt, and will spend a staggering $7 trillion in interest costs over the next decade," he said, adding "we must put our fiscal house in order and begin to manage our national debt".

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US public debt at record high above $22 trillion

About Gopi Adusumilli

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc. He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources. When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any. He can be reached at gopi@socialnews.xyz

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