Kathmandu. America’s debt, the world’s largest economy, is growing rapidly every year. The us national debt now exceeds $37 trillion. This has led to a wave of anxiety in the US.
The cost of paying interest each year is increasing by about $1 trillion. If debt continues to rise for some time, the U.S. budget could also be affected and U.S. growth could be halted.
As of June 20, the U.S. government has debt that the entire economy will grow in a year. The Congressional Budget Office (CBO) estimates that without major reforms, debt will rise to 156% of GDP by 2055. At current levels, an annual deficit of $2 trillion is fuelling growth in debt. Which is being exacerbated by rising spending and steady revenue growth.
What is the latest threat to america?
The biggest and most recent threat to america is about interest. About one-fourth of the total tax income is now being spent to repay the loan. That means saving less money for millions of American-dependent sectors, such as Social Security, Medicare, National Defense and Infrastructure.
U.S. economy in crisis
The risk isn’t just from budget cuts. Economists have warned that this debt could reduce private investment and increase debt costs. Which hinders economic growth. The CBO estimates that gdp could fall by $340 billion over the next decade if the debt burden is not controlled. This could potentially lead to 1.2 million job losses and slow wage growth across sectors.
may decrease dollar
Rising interest rates add to the damage. The cost of debt for all is rising as global lenders demand higher returns to make up for the U.S. deficit. The financial crisis is deepening. On the other hand, if investors lose confidence in the government’s financial management capabilities, interest rates could rise sharply or the dollar could fall. This can lead to losses on a global scale.
Despite the growing debt crisis, the U.S. economy continues to grow, but its pace has slowed significantly. Gdp growth this year is estimated to be only 1.4 per cent to 1.6 per cent. Unemployment is rising and inflation is above target.
Warnings from economists and business leaders and comments by people like Elon Musk now seem to be true. If the U.S. continues on this path, future generations may not only have to pay the price, but may have to face the consequences long ago. – Agency
