tl;dr
The U.S. national debt reached a record $38 trillion on October 21, 2023, matching the combined GDP of China, Germany, Japan, India, and the UK. By October 28, 2023, it had grown to $38.076 trillion, adding $6.9 billion daily. The debt now burdens U.S. households with $287,000 each, while interest p...
**U.S. National Debt Hits Record $38 Trillion, Matching Top Global Economies' Combined GDP**
The U.S. national debt has reached a staggering $38 trillion, a figure now equivalent to the combined gross domestic product (GDP) of the world’s second- to sixth-largest economies—China, Germany, Japan, India, and the United Kingdom—according to the Peter G. Peterson Foundation, a nonpartisan fiscal policy watchdog. This milestone underscores growing concerns about the nation’s fiscal trajectory and its implications for the economy.
The debt crossed the $38 trillion threshold for the first time on October 21, 2023, and had risen to $38.076 trillion by October 28, 2023. At its current pace, the debt grows by $4.8 million per minute, $288 million per hour, or $6.9 billion per day. These figures highlight the relentless expansion of the national debt, fueled by persistent budget deficits and rising government spending.
Per capita, the debt stands at approximately $111,000, while the average burden per U.S. household is around $287,000. These numbers reflect the increasingly complex financial challenges facing American families and the broader economy.
A critical concern is the cost of servicing this debt. The Peter G. Peterson Foundation reports that the U.S. spends roughly $3 billion daily in interest payments on the national debt. This figure could escalate further if credit rating agencies like Moody’s, Fitch, and Standard & Poor’s continue to downgrade U.S. debt ratings.
The foundation warns that while U.S. Treasury securities have long been considered a “safe asset,” repeated downgrades signal a potential loss of confidence. “If market observers, including the ratings agencies, continue to lose faith in the safety of Treasury securities, the United States will have to offer higher rates of return to attract investors, which would put upward pressure on interest rates,” the report states.
The implications of this scenario are far-reaching. Higher interest rates could stifle economic growth, increase borrowing costs for businesses and consumers, and exacerbate inflationary pressures. For now, the U.S. remains a dominant force in global finance, but the rapid accumulation of debt and the risk of eroding investor confidence pose significant long-term risks.
As the nation grapples with these challenges, the Peter G. Peterson Foundation emphasizes the urgency of addressing fiscal sustainability to safeguard economic stability for future generations.