US national debt crosses $31 trillion - US Treasury Department -

Washington: The US national debt has exceeded $31 trillion, a historic high in the US economy. After US President Joe Biden came to power, the debt increased by $3.37 trillion. Biden’s over-ambitious and expensive policies is the reason for this debt burden. Analysts have warned such policies are creating shocks for the US economy.

On Tuesday, the US treasury department published the debt data, which reports that as of Monday, 3rd October, the total debt in the US stands at $31.123 trillion. About $8 trillion is from foreign governments and investments, with maximum contributions from China. Analysts have warned that the increasing debt in conjunction with rising interest rates by the Federal Reserve is a matter of great concern.

Two years ago, the Congressional Budget Office (CBO), part of the US Parliament, had submitted a report which predicted the US national debt to reach $30 trillion by 2025. However, Biden’s policy has exceeded the limit three years in advance. The analysts suggest that the interest payment on the debt itself would be around $5 trillion over the next decade, which will be higher than the annual defence budget.

Furthermore, Joe Biden announced policies to accelerate the economy and ambitious plans for social welfare spending. Additionally, the student loans waiver was announced. These decisions are adding the debt burden. Just the waiver of student loans would need $400 billion over the next 30 years. With the rising inflation and fear of recession in the US, there is a likely chance of the debt increasing soon.

After the recession of 2008-2009 in the US, the debt started to build up. Nearly $21 trillion of debt has been added in the last 21 years. At the start of this year, Federal Reserve Chairman Jerome Powell had raised concern that the debt build-up rate is higher than the fiscal growth rate of the economy.