The U.S. national debt surpassed $34 trillion this week, marking a grim milestone as federal debt continues to rise at a record pace under persistent annual deficits, according to the Treasury Department.
We have quite a while yet. We spend about 200 billion servicing the debt right now and have around 4.8 trillion in revenue.
The warning line is having a debt equal to your GDP. The US has a GDP of around 28 trillion but a debt of 34 trillion. So we are past that warning line, but by itself that doesn’t mean anything.
For other countries it would signal to banks and other countries that it might be a bad idea to loan to them, but the US has a kind of special status in the global economy and this hasn’t slowed down loaning so far.
We have quite a while yet. We spend about 200 billion servicing the debt right now and have around 4.8 trillion in revenue.
The warning line is having a debt equal to your GDP. The US has a GDP of around 28 trillion but a debt of 34 trillion. So we are past that warning line, but by itself that doesn’t mean anything.
For other countries it would signal to banks and other countries that it might be a bad idea to loan to them, but the US has a kind of special status in the global economy and this hasn’t slowed down loaning so far.