Featured Image Credit: Getty Images/SAUL LOEB
Topics: US News, Politics, Donald Trump, Money
Lucy Devine
Topics: US News, Politics, Donald Trump, Money
An expert has shared an unsettling warning as US national debt reaches an eye-watering $38 trillion, US Treasury Department data reveals.
While the debt stood at $34 trillion in January 2024, it rose to $35 trillion in July 2024 and $36 trillion in November 2024.
The most recent boost comes amid the latest government shutdown, which experts believe could be one of the longest in US history.
Following the news, experts have warned that the recent debt rise is a 'troubling sign'.
Advert
Government shutdowns can increase the national debt because they often impact economic productivity. For example, the BBC explains that approvals for loans and permits can be delayed, as well as reviews of potential stock listings.
Meanwhile, CBS explains that restarting federal programs can also incur costs.
One report has estimated that the cost of the current shutdown could be pricey.
“We estimate that each week of shutdown would reduce US GDP growth by 0.1 percentage points (ppt) in Q4 (in annualized terms), translating into a $7 billion weekly hit to the economy,” a report by EY Parthenon explained.
Meanwhile, Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said in a statement: "Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties.
"If it seems like we are adding debt faster than ever, that's because we are. We passed $37 trillion just two months ago, and the pace we're on is twice as fast as the rate of growth since 2000."
At midnight on October 1, the US federal government ceased operations after both Democratic and Republican funding bills failed to reach 60 votes in the Senate.
On October 13, House Speaker Johnson held a press conference in Washington, D.C., where he claimed we were ‘barreling toward one of the longest shutdowns in American history’.
The 53-year-old added he ‘won’t negotiate’ with Democrats until they hit pause on their healthcare demands, which are related to the Affordable Care Act subsidies, as reported by the Associated Press.
The record for the longest government closure in US history took place during President Donald Trump’s first term in office, lasting for 34 days.
On Friday (October 24), Trump took to his Truth Social account, where he shared a post about US wealth.
He wrote: "THE UNITED STATES IS WEALTHY, POWERFUL, AND NATIONALLY SECURE AGAIN, ALL BECAUSE OF TARIFFS! THE MOST IMPORTANT CASE EVER IS IN THE UNITED STATES SUPREME COURT. GOD BLESS AMERICA!!!"