Washington: The total national debt burden of America has exceeded $ 30 trillion at a record level. The Treasury Department, which comes under the US government, has released this figure on Tuesday. According to American media reports, experts are seen divided on this issue. Such a huge figure of debt has come to the fore at such a difficult time when America’s fiscal and monetary policy is going through difficulties.
The cost of borrowing is also likely to increase, which will have a direct impact on the country’s economy. According to the data released by the department, the total loan rate is till January 31. Which is more than $ 7 trillion from January of the last year 2020. At that time the country’s economy was not hit by the Coronavirus (US Economy After Pandemic). There are many reasons behind Washington’s skyrocketing both public and intergovernmental debt. One reason is that the government has increased government expenditure due to the coronavirus epidemic (Covid-19).
Money was taken from investors of Japan and China
During this period (since the end of 2019), the federal government has borrowed nearly $7 trillion from foreign investors led by Japan and China, which will need to be paid back. Another reason American finance experts have attributed to the increase in the national debt burden since the 2008 financial crisis. Which was about a decade before the pandemic. Then a big economic crisis had arisen in America. When the global economy began to decline in December 2007, the US national debt burden stood at $9.2 trillion.
The figure will also increase due to the Trump government
According to the Tax Policy Center, the revenue deficit from tax cuts under the Tax Cuts and Jobs Act (TCJA), enacted by the then Trump government in 2017, will add an estimated $1-2 trillion to federal debt between 2018 and 2025. Which has increased even more due to the pandemic. Even during the Biden government, Congress approved trillions of dollars under pandemic programs to support small businesses, unemployed workers and their families, and other groups.
