U.S. National Debt Skyrockets to Unprecedented $34 Trillion!

[CharlieH]

 

The United States government's debt has exceeded $34 trillion for the first time, just weeks before Congress faces deadlines to reach an agreement on new federal funding plans.

According to data released by the Treasury Department, the "total public debt outstanding" reached $34.001 trillion on December 29. This figure, also referred to as the national debt, represents the cumulative amount of borrowing by the U.S. federal government throughout the nation's history.

This milestone comes within three months of the U.S. national debt surpassing $33 trillion, driven by an expanding budget deficit – the disparity between government expenditures and tax revenues.

Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, a fiscal watchdog, labeled the record-breaking figure as a "truly depressing achievement." She emphasized the perilous impact of the escalating debt on the economy and national security, expressing concern that the U.S. continues to amass debt despite the risks.

The national debt has become a significant point of contention between Republicans and Democrats, exacerbating disputes over the federal budget that pose periodic threats of government shutdowns.

Republicans argue that the spending programs advocated by the Biden administration are excessively costly, while Democrats contend that tax cuts supported by the GOP have diminished revenue. White House spokesperson Michael Kikukawa attributed the escalating debt to "Republican giveaways" favoring major corporations and the wealthy, resulting in cuts to Social Security, Medicare, and Medicaid adversely affecting ordinary Americans.

Kikukawa conveyed President Joe Biden's plan to reduce the deficit by $2.5 trillion, focusing on ensuring the wealthy and large corporations contribute their fair share and cutting wasteful spending on special interests, including prominent pharmaceutical and oil companies.

Regardless of the attribution of blame, the growing debt and political brinksmanship have already impacted America's credit rating. Fitch downgraded its rating on U.S. sovereign debt from AAA to AA+ in August, while Moody's issued a warning in November that it might also downgrade the U.S.' last remaining AAA rating.

 

Based on a CNN article.

 

 

 

[Skipalongcassidy]

"Let them eat cake"

[sirineou]

Being one I am ashamed to admit, but americans are very stupid on the whole .

The goverment will simply print more money, but that will dilute the current supply and decrease it's value. So it is a defacto tax on those with savings. 

I just came back from the US where I went to spend the holidays with family. I couldn't believe how expensive  things have got in the past year. 

Edited January 4 by sirineou

[Trippy]

Sadly, there's going to be some point in the future when the US can no longer pay it's debts. The govt (all of them) has failed the people.

[Tug]

A lot of that is interest paid to finance the debt more pressure on the fed to reduce the interest rates.I like’s cheep money!that being said all I have currently is a small amount on my car note every thing else is paid in full,I could easily do the same with the car note but I like to carry a little bit of debt to keep the credit gods happy 😊 

[JonnyF]

I wonder how long before Biden attempts to gaslight the electorate by claiming he has actually reduced the debt.

 

You know, like he did a few months ago.

 

https://edition.cnn.com/2023/10/06/politics/fact-check-biden-cut-debt-surplus-corporate-tax-unemployment/index.html

 

[thaibeachlovers]

One suspects that is an impossible debt to pay off if acting like there isn't one ( unlimited spending on a couple of current conflicts comes to mind ), so one wonders if they actually have any sort of plan to deal with it?

 

If a family was in a situation of a very large debt, likely they would economise, but America seems to be doing the opposite, just spending more and more on it's military adventures, and allowing the southern border to apparently descend into chaos.

 

I hope that is a question put to the candidates in the pre election debates.

[thaibeachlovers]

5 hours ago, sirineou said:

Being one I am ashamed to admit, but americans are very stupid on the whole .

The goverment will simply print more money, but that will dilute the current supply and decrease it's value. So it is a defacto tax on those with savings. 

I just came back from the US where I went to spend the holidays with family. I couldn't believe how expensive  things have got in the past year. 

IMO you can expect your US $ to be worth a lot less. If you depend on a US pension to stay in LOS, you might be in trouble.

[Chomper Higgot]

2 minutes ago, thaibeachlovers said:

One suspects that is an impossible debt to pay off if acting like there isn't one ( unlimited spending on a couple of current conflicts comes to mind ), so one wonders if they actually have any sort of plan to deal with it?

 

If a family was in a situation of a very large debt, likely they would economise, but America seems to be doing the opposite, just spending more and more on it's military adventures, and allowing the southern border to apparently descend into chaos.

 

I hope that is a question put to the candidates in the pre election debates.

$Trillions in tax give seats to the hyper wealthy don’t seem to bother you.

[Berkshire]

Elected officials talk about reducing the debt, but most don't have the stomach to do anything about it.  Because people don't get elected by taking away benefits and raising taxes.  In order to reduce the debt, the gov would not only have to tackle entitlements (i.e., medicare, SS, gov pension, etc.), but they'd have to look at the defense budget.  It's ballooned to an outrageous amount.  But if anyone even brings it up, they're labelled soft on national security.  Then there's all manner of subsidies, pork, etc., not to mention a huge amount of fraud and waste.  The debt isn't going down anytime soon.  Maybe our great grandkids can figure something out....5555

Edited January 5 by Berkshire

[BenStark]

4 minutes ago, Berkshire said:

In order to reduce the debt, the gov would not only have to tackle entitlements (i.e., medicare, SS, gov pension, etc.), but they'd have to look at the defense budget.  It's ballooned to an outrageous amount. 

 

Yeah, this happens when warmongering Democrats are in charge

[ozimoron]

5 minutes ago, BenStark said:

 

Yeah, this happens when warmongering Democrats are in charge

 

Trump destroyed the national debt with a 2.1 trillion giveaway to the rich. The US is now paying interest on that gift.

 

Who wanted to bomb Mexico? Who had to call Trump off atatcking Iran?

Edited January 5 by ozimoron

[Berkshire]

23 minutes ago, BenStark said:

 

Yeah, this happens when warmongering Democrats are in charge

Oh please.  This is a bipartisan problem and you're trying to blame one side.  Perhaps you can tell me how much the debt went up while Trump was in office?

[Hanaguma]

1 hour ago, Berkshire said:

Oh please.  This is a bipartisan problem and you're trying to blame one side.  Perhaps you can tell me how much the debt went up while Trump was in office?

True.

 

When the name of the game is "get to Washington and stay there as long as possible", there is no incentive for politicians to do anything other than pander to interest groups. Even at the cost of the public at large. "I am taking away your benefits" is NOT a winning political message. 

 

Only cure? Balanced budget amendment, and strict term limits in Congress.

[Tug]

7 hours ago, Hanaguma said:

True.

 

When the name of the game is "get to Washington and stay there as long as possible", there is no incentive for politicians to do anything other than pander to interest groups. Even at the cost of the public at large. "I am taking away your benefits" is NOT a winning political message. 

 

Only cure? Balanced budget amendment, and strict term limits in Congress.

Or EVERYONE pays their fair share of taxes + fiscal responsibility and getting rid of the dark money in politics 

Edited January 5 by Tug

[Hanaguma]

7 minutes ago, Tug said:

Or EVERYONE pays their fair share of taxes + fiscal responsibility and getting rid of the dark money in politics 

Great idea. Now if only you could tell me what a "fair share" of taxes would be, that would be great. 

 

Maybe a nice simple flat tax, as proposed by Steve Forbes, would do the trick.

[Yellowtail]

1 hour ago, Tug said:

Or EVERYONE pays their fair share of taxes + fiscal responsibility and getting rid of the dark money in politics 

You don't hear much about dark money anymore since most of it is on the left now. 

 

Right now, almost half of adults pay no federal income tax. 

 

I'm all for fiscal responsibility. 

[JonnyF]

14 hours ago, Hanaguma said:

Great idea. Now if only you could tell me what a "fair share" of taxes would be, that would be great. 

 

Maybe a nice simple flat tax, as proposed by Steve Forbes, would do the trick.

 

 

I suspect he means that hard working,  educated people who have been successful pay a "fair" amount to people who dropped out of school at 15 and cannot write coherent sentences and blame everything on Trump.

 

 

[impulse]

11 minutes ago, JonnyF said:

I suspect he means that hard working,  educated people who have been successful pay a "fair" amount to people who dropped out of school at 15 and cannot write coherent sentences and blame everything on Trump.

 

Don't forget the Dems' creamy dream...  Free health care for any foreigner who can make it to the US border.

 

Like that's going to end well.

 

Edited January 6 by impulse

[JonnyF]

18 minutes ago, impulse said:

 

Don't forget the Dems' creamy dream...  Free health care for any foreigner who can make it to the US border.

 

Like that's going to end well.

 

 

 

But it makes them feel so virtuous at their extravagant dinner parties. Back slapping all round.

 

You're so wonderful dear, more Champagne?

 

Priorities...

[Emdog]

there is no "skyrocket": that implies a 90 degree straight up launch. On one of the other posts, it showed US national debt since 2001: the slope increase looked like the side of a pyramid: smooth, no dips or spikes....

I wonder what would look like if included Clinton years: he did leave office with a SURPLUS...

"I suspect he means that hard working,  educated people who have been successful pay a "fair" amount to people who dropped out of school at 15 and cannot write coherent sentences and blame everything on Trump." More ignorant foolishness. Dunning-Kreuger in action.

"Among college graduates, a mere 30% approved of Trump’s job performance, and 67% disapproved. Even among non-graduates, only 42% approved of Trump, and 52% disapproved.

The only education group to give Trump higher approval than disapproval ratings were white non-college graduates, where 52% approved and 43% disapproved. Among white college graduates, those disapproving of Trump’s job performance (66%) was more than two-to-one higher than those approving (32%)."

https://www.forbes.com/sites/michaeltnietzel/2020/06/15/biden-vs-trump-the-college-education-divide-may-be-wider-than-ever/?sh=5db2ef2a7999

[Yellowtail]

31 minutes ago, Emdog said:

there is no "skyrocket": that implies a 90 degree straight up launch. On one of the other posts, it showed US national debt since 2001: the slope increase looked like the side of a pyramid: smooth, no dips or spikes....

I wonder what would look like if included Clinton years: he did leave office with a SURPLUS...

"I suspect he means that hard working,  educated people who have been successful pay a "fair" amount to people who dropped out of school at 15 and cannot write coherent sentences and blame everything on Trump." More ignorant foolishness. Dunning-Kreuger in action.

"Among college graduates, a mere 30% approved of Trump’s job performance, and 67% disapproved. Even among non-graduates, only 42% approved of Trump, and 52% disapproved.

The only education group to give Trump higher approval than disapproval ratings were white non-college graduates, where 52% approved and 43% disapproved. Among white college graduates, those disapproving of Trump’s job performance (66%) was more than two-to-one higher than those approving (32%)."

https://www.forbes.com/sites/michaeltnietzel/2020/06/15/biden-vs-trump-the-college-education-divide-may-be-wider-than-ever/?sh=5db2ef2a7999

Yes, it's all Trump's fault. 

[candide]

More interesting is the ratio debt/GDP, as debt in usually assessed as a % of GDP

 

It 's easy to spot under which President it increased most.

https://tradingeconomics.com/united-states/government-debt-to-gdp

[Hanaguma]

21 hours ago, Emdog said:

there is no "skyrocket": that implies a 90 degree straight up launch. On one of the other posts, it showed US national debt since 2001: the slope increase looked like the side of a pyramid: smooth, no dips or spikes....

I wonder what would look like if included Clinton years: he did leave office with a SURPLUS...

"I suspect he means that hard working,  educated people who have been successful pay a "fair" amount to people who dropped out of school at 15 and cannot write coherent sentences and blame everything on Trump." More ignorant foolishness. Dunning-Kreuger in action.

"Among college graduates, a mere 30% approved of Trump’s job performance, and 67% disapproved. Even among non-graduates, only 42% approved of Trump, and 52% disapproved.

The only education group to give Trump higher approval than disapproval ratings were white non-college graduates, where 52% approved and 43% disapproved. Among white college graduates, those disapproving of Trump’s job performance (66%) was more than two-to-one higher than those approving (32%)."

https://www.forbes.com/sites/michaeltnietzel/2020/06/15/biden-vs-trump-the-college-education-divide-may-be-wider-than-ever/?sh=5db2ef2a7999

Clinton did better than most, blessed with strong economic tailwinds and some good policy. Yet he did not pay down the actual national debt very much. He did have a surplus from finally eliminating the year on year deficit, and deserves credit for that. But the spectre of the national debt still loomed.

[bendejo]

It will not be paid, ever, but it will be accommodated.  Debt gets traded like baseball cards.

 

[impulse]

19 hours ago, candide said:

More interesting is the ratio debt/GDP, as debt in usually assessed as a % of GDP

 

It 's easy to spot under which President it increased most.

https://tradingeconomics.com/united-states/government-debt-to-gdp

 

You don't figure Covid had something to do with that? 

 

Interesting that, under the miracle of Bidenomics, it doesn't seem to be coming down.  Even after Covid restrictions were lifted and the economy came roaring back to life.  Cough, cough.

 

 

[candide]

32 minutes ago, impulse said:

 

You don't figure Covid had something to do with that? 

 

Interesting that, under the miracle of Bidenomics, it doesn't seem to be coming down.  Even after Covid restrictions were lifted and the economy came roaring back to life.  Cough, cough.

 

 

Of course, Covid has a lot to do with it. My point is that the current high level of the debt ratio started during the period before Biden became President. It only incrementally increased after that.

 

As to the post-Covid period, one reason the economy has been roaring was that it has been fuelled by expenses and investment aiming  to put the economy back on track. The very good U.S. GDP growth (relative to other G7 countries) was not reached for no reason. Less debt would have resulted in lower GDP (and less jobs) and the debt/GDP ratio would not have been better.

 

https://commonslibrary.parliament.uk/research-briefings/sn02784/

[Berkshire]

The interest in this thread--or lack thereof--shows clearly what most Americans think about this topic.  In some ways, American citizens are much like the politicians.  A lot of talk, no action.  Because if we all really cared, we'd vote people into office who are adamant about reducing the debt.  Instead, we do the opposite.

[ozimoron]

Just now, Berkshire said:

The interest in this thread--or lack thereof--shows clearly what most Americans think about this topic.  In some ways, American citizens are much like the politicians.  A lot of talk, no action.  Because if we all really cared, we'd vote people into office who are adamant about reducing the debt.  Instead, we do the opposite.

 

Show me a side which wants to reduce the debt. Don't tell me its the republicans and Mr 2 trillion dollars.

[Berkshire]

1 minute ago, ozimoron said:

 

Show me a side which wants to reduce the debt. Don't tell me its the republicans and Mr 2 trillion dollars.

The Congress only wants to reduce the debt when the other side is POTUS.  Truth is, lots of spending and tax cuts are what gets people elected.  Both increases the debt....which is why it will keep getting worse.