#USNationalDebt A American Economy Time Bomb

The national debt of the United States has already surpassed $34 trillion, and that number continues to grow every second. What was once a warning for the distant future is now a present and concerning reality. But what does this astronomical number really mean? And what are the consequences for the country and the world?

The Origin of the Debt

American public debt began to expand significantly after World War II, but it was in the last few decades — especially after the financial crisis of 2008 and the stimulus packages during the COVID-19 pandemic — that federal spending skyrocketed. The government issues Treasury bonds to finance its deficits, which means it borrows money from the market (investors, foreign governments, and the Federal Reserve itself) to meet its obligations.

Why does the debt continue to grow?

Several factors drive the growth of the national debt:

Chronic fiscal deficits: The government spends more than it collects.

Compound interest: As the debt grows, the interest paid on it also increases.

Mandatory programs: Such as Social Security, Medicare, and national defense, which consume a large part of the budget.

What are the risks?

The increase in debt has direct and indirect effects:

Pressure on interest rates: The Federal Reserve may need to raise rates to contain inflation, which further increases the cost of servicing the debt.

Loss of confidence: Investors may demand higher yields or simply avoid American bonds, which would weaken the dollar.

Global impact: As the U.S. economy is a pillar of the global financial system, any instability can cause turbulence in international markets.

Is there a solution?

There are no easy answers. Reducing the debt would require significant cuts in public spending, tax increases, or a combination of both — unpopular and politically sensitive measures.