(HorizonPost.com) – Throughout the pandemic, the federal government provided funds to the American public to help sustain them and their businesses through the crisis. On February 1, the Treasury Department released the gross national debt numbers, unfortunately revealing that the assistance contributed to pushing the debt to just over $30 trillion – a record. Chief executive of the Peter G. Peterson Foundation, Michael Peterson, stated the milestone is a “giant red flag” regarding the financial future of the US.
The Wall Street Journal reported the United States was on a necessary spending and borrowing binge, but now the question is: How will the government pay off the massive debt?
Breaking News: The U.S. national debt topped $30 trillion, years ahead of schedule, as pandemic spending fueled government borrowing. https://t.co/6yUwsPvi1P
— The New York Times (@nytimes) February 1, 2022
Although the large number is alarming, some economists believe it isn’t unhealthy because of the growing economy. Interest rates are still low, so consumers are still willing to spend, and investors are continuing to buy US Treasury securities essential loaning funds to the government. While rates remain low, Treasury Secretary Janet Yellen stated the government’s interest payments on the mounting debt are “very manageable.”
Unfortunately, the programs supporting the country throughout the pandemic recently ended, and the Federal Reserve is considering raising interest rates to control inflation. Once that happens, the government may begin to have trouble managing its growing mountain of debt.
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