U.S. National Debt Tops $34 Trillion, Raising Concerns Over Long-Term Sustainability
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The U.S. national debt surpassed $34 trillion for the first time in history this month, raising concerns about debt sustainability.
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Large ongoing deficits and high interest rates are making the debt less sustainable over time.
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There's no consensus on the exact "tipping point" when debt becomes unsustainable, but estimates range from 80% to over 200% debt-to-GDP ratio.
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A debt crisis could happen if markets lose confidence in policymakers' ability to get deficits under control.
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Interest costs are growing rapidly, expected to exceed the defense budget within years and become the single largest government program in 25 years.