The Way the U.S. Accumulated $31 Trillion in Debt

Written by: Vasantha


There will be another federal showdown after two decades of tax cuts, recession responses, and bipartisan spending contributed $25 trillion to the total.

The U.S. treasury reported in October that the gross national debt surpassed $31 trillion for the first time. In December, $31.3 trillion was reached.

Based on the Peter G. Peterson Foundation, that translates to $93,878 of debt for every American.

As interest rates have risen dramatically over the past few months - the Fed funds rate target currently sits at 4.25% to 4.50% - the national debt will continue to grow at an alarming rate.

“Interest rates are a major problem,” says Phillip Braun, clinical professor of finance at North Western University’s Kellogg School of Management.

“The Treasury finances the debt with a lot of short-term borrowing … It'll push other budgetary items out.”

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