The US national debt is expected to increase by 64% by the end of the decade, according to estimates from the Congressional Budget Office. By 2034, the national debt is predicted to reach $56 trillion, while the projected deficit for this fiscal year is $1.9 trillion, amounting to about 6% of GDP. Despite efforts to reduce the $34 trillion debt burden, it seems unlikely that it will shrink any time soon.
Recent legislation has contributed to an increase in projected deficits by adding $1.6 trillion to total projections. Emergency aid provided to various countries such as Ukraine, Israel and other Indo-Pacific regions has contributed significantly to this increase. Economists have long warned about the dangers of growing government debt, stating that it could lead to inflation and limit government funding for important programs such as Social Security and national defense.
The US faces a significant increase in its debt burden due to a steeper pace of government borrowing than previously anticipated with an estimated $3 trillion added each year for the next decade. As a result, economists warn that if action isn’t taken soon, the consequences could be severe.