US public debt exceeded 100% of GDP, reaching $31.27 trillion. Economists warn about effects on wages, interest rates, and public spending.
At a milestone with strong symbolism but also serious economic implications, the public debt of USA He first surpassed 100% of Gross Domestic Product (GDP) after World War II.
According to figures from Bureau of Economic Analysis, federal debt amounted to 31.27 trillion. dollars in late March, when the country's GDP was estimated at 31.22 trillion. dollars for the same period.
One «bell» on the budgetary progress
This development has caused intense concern among economic analysts. Maya MacGuineas, head of the Committee for a Responsible Federal Budget, mentioned a loud warning signal.
As he noted, debt is now around twice the historical average, stressing that repeated warnings in recent years have been confirmed.
Historical comparison
The only time the U.S. had been in a similar position was after World War II, when debt had been ejected to 106% of GDP due to huge war costs. Unlike then, today the increase is mainly attributed to timeless fiscal deficits and political choices.
What it means to economy and citizens
The continued increase in debt has a direct impact on the economy. Among other things:
- It pushes up the interest rates
- Slows wage growth
- Increases costs for housing, consumer loans and credit cards
At the same time, a growing proportion of the federal budget is directed at paying interest, which has already exceeded 1 trillion. dollars per year – amount even higher than defence expenditure.
Warnings and political reactions
The Congressional Budget Office has already warned that, unless the fiscal course changes, debt will continue to increase over the next few years, further exceeding post-war levels.
At the same time, President Donald Trump appears reassuring, pointing out the dynamics of the labour market and the increase in investment in the country.
However, economic operators are calling for immediate measures to reduce deficits, proposing interventions that could limit debt to 100% of GDP.
