Photo: Douglas Rissing / iStock / Getty Images
The United States national debt has reached a historic milestone, surpassing $38 trillion for the first time. As of Tuesday (October 21), the debt stood at $38,019,813,354,700.26, according to the Treasury Department. This milestone follows closely on the heels of the $37 trillion mark reached in mid-August, highlighting the rapid pace of debt accumulation.
The debt level equates to approximately $111,000 per person in the United States, as reported by the Peter G. Peterson Foundation. The foundation's CEO, Michael A. Peterson, criticized lawmakers for not fulfilling their fiscal responsibilities.
"If it seems like we are adding debt faster than ever, that's because we are. We passed $37 trillion just two months ago, and the pace we're on is twice as fast as the rate of growth since 2000," he told Fox Business.
The surge in national debt is driven by several factors, including increased spending on entitlement programs like Social Security and Medicare, as well as rising interest expenses due to higher interest rates. The federal government ran a budget deficit of approximately $1.8 trillion in the last fiscal year, ending September 30. The Congressional Budget Office (CBO) projects that the national debt held by the public will rise from roughly 100% of GDP in 2025 to 120% by 2035.
The growing debt has led to concerns about the sustainability of the current fiscal trajectory. Moody's recently downgraded the US government's credit rating from AAA to AA1, citing the failure to reverse large annual fiscal deficits and growing interest costs. Economists warn that the current path could lead to financial instability if not addressed.