Posted 1/16/2024, 8:08:57 PM
U.S. National Debt Hits Record $34 Trillion; Economists Debate Risks of Rising Red Ink and Path to Fiscal Discipline
- The U.S. national debt recently topped $34 trillion, a new record high. Economists debate how worrisome the rising debt levels are.
- Higher debt could lead to challenges like increased interest rates, inflation, and potential cuts to programs like Social Security. However, some say current interest payments remain reasonable.
- The debt figure keeps climbing in part because the U.S. regularly runs a budget deficit, spending more than it takes in via tax revenue.
- A 2023 Pew survey found 57% of Americans view reducing the deficit as a top priority, up 12 percentage points from the prior year.
- It's unclear how much debt the country can take on before facing repercussions like default. More fiscal discipline may be needed to address disconnect between revenues and spending.