The data gathered by Learnbonds.com shows that the United States public debt hit a record-high of $23.2 trillion in December 2019. This is $1.23 trillion more compared to December 2018 where it was $21.9 trillion.
The debt took a spike from July 2019 where it stood at $22.02 trillion. Onwards, the debt spiked to hit $23. 2 trillion in December. The latest data comes at the moment, tax revenue has fallen while federal spending continues to rise.
Interestingly, the debt remained stagnated between March and July. The highest figure was $22.02 trillion in March. By August 2019, the debt hit a drastic surge to $22.46 trillion, then some economists expressed worry.
Debt Set to Increase
A report by the Treasury Department indicates that the government debt is set to rise, eventually pushing up the size of government debt auctions.
Based on the current growth rates, it is projected that the debt might reach $28.7 trillion by 2029. Notably, this figure does not entail the amount the government owed to itself. Currently, the latest debt figures mean that every US citizen owes approximately $70,139 while the US debt per taxpayer is $187,388.
When compared to China, the Asian giant’s debt is surprisingly almost three times less at $8.3 trillion. Globally, Japan comes second after the US in terms of national debt to stand at $11.3 trillion, while the United Kingdom occupies the fourth slot at $3.3 trillion. Italy caps the top five categories to record $2.8 trillion in public debt.
Notably, the IMF places the global debt at $188 trillion. By the end of 2018, The fund’s database indicates the debt is up by $3 trillion compared to 2017.
Public debt is the amount a country owes to lenders outside of itself including individuals, businesses, and even other governments. The debt is also a stock variable which is calculated at a specific point in time, and it is the accumulation of all prior deficits.
The growing public debt has found its place in the political circles over recent years. Democrats and Republic have been engaging in fierce debates regarding measures to manage the growing debt. Although both sections of the political divide have expressed willingness to lower the debt, all signs indicate that it destined to rise across the current decade. At the same time, we have hade debates on the amount the federal government should hold in public debt.
The growth of public debt will be driven by mandatory spending initiatives like Social Security, Medicare, and Medicaid. In the current budget, their costs account for 47 per cent of all federal spending.
In most cases, if the United States incurs excessive public debts, it can impact global economic stability with ramifications for the strength of the currency in trade, economic growth, and unemployment.