#USNationalDebt

America’s national debt has shattered the $37 trillion mark, triggering alarm across financial and policy circles as the cost of simply paying interest approaches $1 trillion annually, a level that could soon choke the federal budget and cripple core government functions.

As of June 20, the U.S. government owes more than the entire economy produces in a year. The Congressional Budget Office projects that without major reform, debt will soar to 156% of GDP by 2055.

At current levels, annual deficits of $2 trillion are driving the debt surge, fueled by rising spending and stagnant revenue growth.

The most immediate threat is the interest bill: nearly a quarter of all federal tax income is now spent servicing the debt. That means less funding for Social Security, Medicare, national defense, and infrastructure — programs millions of Americans depend on.

The risk isn’t just about budget cuts. Economists warn that this debt path could crowd out private investment, drive up borrowing costs, and stunt economic growth. The CBO estimates GDP could shrink by $340 billion in the next decade if the debt burden isn't controlled — potentially costing 1.2 million jobs and slowing wage growth across the board.

The threat of a fiscal crisis is growing more real. If investors lose confidence in the government’s ability to manage its finances, a sharp spike in interest rates or a dollar collapse could follow, undermining economic stability and triggering global aftershocks.

While the U.S. economy is still growing, the pace has slowed significantly. GDP growth is forecast at just 1.4%–1.6% this year, unemployment is ticking up, and inflation remains above target. The margin for error is narrowing.