US national debt surpasses $38 trillion for 1st time
As of October 2024, the US national debt has crossed $38 trillion for the first time ever.
That's a jump of $1 trillion in just over two months—one of the fastest increases outside the COVID-19 pandemic years—happening right as the government faces a shutdown in 2024.
Interest payments are a growing concern
An aging population is pushing up costs for Social Security and Medicare, while higher interest rates mean it's getting pricier to pay back what's already owed.
Michael A. Peterson, CEO of the Peter G. Peterson Foundation, points out that interest payments are now growing faster than anything else in the budget, possibly hitting $14 trillion over the next decade.
Future generations may face economic challenges
If things keep going like this, debt held by the public could reach 120% of America's total economy within 10 years.
This kind of debt growth can make borrowing tougher for everyone and has already led to credit rating downgrades for the US.
Without some big changes, future generations could be left dealing with even more economic headaches.