Total US public debt broke a record when it exceeded 38 trillion USD in October. Public debt has been described as “America's next great war”.
US public debt, which reached a record level of 37 trillion USD on August 2, has increased by 1 trillion USD in 82 days. According to data published by the US Treasury Department, total debt exceeded 38 trillion dollars as of October 22. The Peter G. Peterson Foundation, a consulting organization working on financial policy, announced that this amount means a debt of 111 thousand dollars per person in America. This advisory body also points out that the amount of US foreign debt is equal to the total value of the gross domestic product of the entire economies of China, India, Japan, Germany and the UK. “TWICE IN THE ENTIRE ECONOMIC PRODUCTION OF THE EU” House Budget Committee Chairman Jodey Arrington called public debt “America's next big battle.” The Republican politician said: “The United States is currently $38 trillion in debt. To put it into perspective, this amount is twice the entire economic output of the European Union, 20 times the annual budget of the United Kingdom and is an excessive burden of $500,000 for every young American under the age of 18.” he said. Arrington said, “The public debt is America's next great war. If we lose this war, we will lose America's world leadership and the future of our children. But if we can muster national courage and intervene responsibly, America will lead the 21st century.” he said. US DEBT COULD REACH 200% OF GROSS DOMESTIC PRODUCT BY 2047 The Congressional Budget Office (CBO), a nonpartisan organization, points out that U.S. debt could reach 200% of gross domestic product by 2047. Economists predict public debt, which has exceeded $38.1 trillion year-to-date and is growing by hundreds of dollars every second, will reach $39 trillion in the next few months as borrowing accelerates. MOODY'S REMOVES US CREDIT RATING Credit rating agency Moody's downgraded the United States' credit rating from AAA to AA1 in May, citing the US government's inability to reverse the negative trend of large annual budget deficits and rising interest costs as reasons for the decision. The total debt of the US, the world's largest economy, exceeds $38 trillion, posing a huge problem not only in terms of scale but also in terms of the ability to pay interest on this debt. The US government spent $1.21 trillion on this debt as of September. This amount corresponds to 17% of total federal spending in fiscal year 2025. Furthermore, this interest rate continues to increase over time. While the average US government debt repayment rate was 1.61% in 2021, the rate is currently 3.36%. It has become a deepening crisis due to factors such as rising public debt due to government spending exceeding revenues, the increase in spending on social security and health services coupled with the country's aging population, the increase in US defense spending, especially after the terrorist attacks of September 11, 2001, and the failure to approve long-term aid packages and budgets after the 2001 financial crisis. 2008 and the Covid-19 pandemic. The scale of public debt not only affects the government's economy in general but also affects the people. Because this means home loans, vehicle and credit card interest rates will rise, investment will fall and wage growth will remain limited, prices of goods and services will rise, inflation risks and governments may cut back on some social programs.
While some economists assess that providing hundreds of billions of dollars in additional income after US President Donald Trump raised taxes is a positive step to reduce the budget deficit, some economists determine that the US is “gradually becoming poorer”. TRUMP PROPOSED “YELLOW CARD” VISA US President Trump proposed an extraordinary solution of selling “Golden Card” visas to wealthy immigrants to pay off the growing public debt.
Proposing a “Golden Card” visa for wealthy immigrants for $5 million and a process that would lead to U.S. citizenship, Trump said: “Providing 1 million cards would mean $5 trillion in resources. If you sell 10 million, it would total $50 trillion. We have $35 trillion in debt. That's great.” He used the following expressions. Total U.S. debt reached $34 trillion in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024. The country's public debt surpassed $1 trillion in 1982, and 26 years later, in 2008, it topped $10 trillion. The Congressional Budget Office predicts that total debt will rise to $30 trillion by 2022 and will exceed $40 trillion by 2027.
