Al Jazeera reports that this debt amount equals approximately $111,000 for every U.S. citizen. The Peter G. Peterson Foundation, a Washington-based think tank, noted that this debt is equivalent to the combined economies of China, India, Japan, Germany, and the United Kingdom.
Just over two months ago, in mid-August of this year, the national debt had crossed the $37 trillion mark. In November 2024, it stood at $36 trillion, and in July 2024, it was at $35 trillion. Michael A. Peterson, CEO of the Peter G. Peterson Foundation, criticized U.S. lawmakers for failing in their “fundamental fiscal duties.”
He stated, "Adding one trillion after another, creating budgets in the midst of crises, is not appropriate for a great nation. Instead, as the debt clock ticks faster, lawmakers should take the opportunity to enact responsible reforms that could steer the country onto a stronger path for the future."
Earlier this year in May, credit rating agency Moody's downgraded the U.S. government’s debt rating from 'Aaa' to 'Aa1' due to successive administrations’ failure to reverse the trend of large annual budget deficits and increasing interest expenses. Similarly, Fitch and Standard & Poor’s lowered the U.S. credit rating in 2011 and 2023, respectively.
While economists continue to debate the extent to which the U.S. can take on debt without triggering a financial crisis, there is a consensus that the current trajectory is unsustainable. According to a 2023 analysis by economists at the Penn Wharton Budget Model, if the national debt exceeds 200% of the country’s GDP, financial markets will no longer be able to absorb it.
Meanwhile, the U.S. Congressional Budget Office (CBO) estimates that by 2047, the national debt could reach 200% of GDP. A significant factor behind this projected rise is the massive tax cuts under President Donald Trump’s "One Big Beautiful Bill Act."
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