The U.S. national debt has exceeded $34 trillion for the first time, with concerns over escalating government spending and its impact.
Fitch Ratings downgraded the nation’s long-term credit score due to deteriorating finances and political divisions.
Economists are alarmed by the pace of spending, predicting a near doubling of the national debt over the next three decades.
Sean Snaith, an economist at the University of Central Florida, said, “This is a warning shot across the U.S. government’s bow that it needs to right its fiscal ship.”
“You can’t just spend trillions of dollars more than you have in revenue every year and expect no ill consequences,” he added.
Michael Peterson, the CEO of the Peter G. Peterson Foundation, said, “America’s fiscal outlook is more dangerous and daunting than ever, threatening our economy and the next generation.”
“This is not the future any of us want, and it’s no way to run a great nation like ours,” he continued.
President Biden’s significant spending has contributed to the debt spike, leading to concerns about economic standing.
Biden said, “I might note parenthetically: In my first two years, I reduced the debt by $1.7 trillion. No President has ever done that.”
Michael Kikukawa, White House assistant press secretary, said, “This is the trickle-down debt — driven overwhelmingly by repeated Republican giveaways skewed to big corporations and the wealthy.”
Rising interest rates have made servicing the debt more expensive, with projected interest payments surpassing other major federal expenditures.
CRFB President Maya MacGuineas, said, “We are clearly on an unsustainable fiscal path.”
“We need to do better,” she added.
“A nation saddled with debt will have less to invest in its own future,” wrote the Peter G. Peterson Foundation.
The public is increasingly prioritizing reducing the budget deficit.
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