The US national debt surpassed 37 trillion USD for the first time on August 12, 2024.
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The US national debt exceeded 37 trillion USD in mid-August 2024.
The Treasury Department announced detailed figures on the debt as of the afternoon of August 12.
The Chair of the Budget Responsibility Committee warns of a serious imbalance in the US financial situation.
What is the current national debt of the United States and what does this milestone mean?
On August 12, 2024, the total US national debt reached 370,048,176,258,422 USD – equivalent to over 37 trillion USD.
This figure marks the first time that a country with the largest economy in the world has surpassed such a massive national debt, indicating the rapid growth rate of federal debt. High debt levels pose challenges to payment capacity and long-term financial stability.
Rapidly increasing national debt can affect interest rates, investment, and international investors' confidence in the US economy.
Why does the US government continue to increase debt at a record pace?
Treasury Department figures show that the federal government continues to maintain large loans for overspending, driving rapid increases in national debt.
The main cause lies in expansive spending policies, combined with pressures on social security, national defense, and emergency assistance programs. This creates significant pressure on budget balance and exacerbates existing debt levels.
Congress continuously approving new loans without a clear spending cut plan exacerbates this situation.
"The financial situation in the United States is extremely imbalanced, while Congress not only fails to prevent but also exacerbates the problem."
Maya McGuinias, Chair of the Budget Responsibility Committee, August 2024
What are the risks and impacts of the national debt surpassing 37 trillion USD on the economy?
The record high national debt poses many risks to economic stability, from increasing borrowing costs for the government to reducing resources for public programs.
The rising costs of debt interest will reduce budgets allocated for development investments and important social services. At the same time, accumulated debt may also affect the country's credit rating, leading to higher borrowing costs.
Prolonged financial imbalance will negatively affect investor confidence and the stability of global financial markets.
What feasible measures are currently available to control and reduce US national debt?
Controlling national debt requires close coordination between the government and Congress in limiting deficit spending, enhancing budget utilization efficiency, and increasing reasonable revenue.
Fiscal policy reform, including restructuring major spending programs and improving revenue through tax policy adjustments, is necessary to ensure financial sustainability.
At the same time, enhancing transparency and accountability in budget management helps build trust among the public and investors.
Frequently Asked Questions
What is the US national debt and why is it rising?
National debt is the total amount of loans taken by the US federal government due to spending exceeding budget revenues, increasing due to spending policies and new approved loans.
How does the national debt surpassing 37 trillion USD affect the people?
High national debt can lead to increased taxes and reduced public spending, affecting social services and the economy as a whole.
Who is responsible for managing and controlling the national debt in the United States?
The federal government and Congress are responsible for managing the budget and making borrowing decisions.
How can the US effectively reduce national debt?
Cut unnecessary spending, enhance fiscal efficiency, and reform the income tax system.
How does national debt affect the cryptocurrency market?
Indirect impacts through fluctuations in interest rates and confidence in the large economy affect both domestic and foreign investment flows, including cryptocurrencies.
Source: https://tintucbitcoin.com/no-cong-my-lan-dau-tren-37-nghin-ty/
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