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America’s national debt is growing at the fastest rate ever, partly driven by “A big beautiful bill” passed by Republicans. earlier this year.
a new forecast from the IMF This shows that the US is headed in the direction of Southern European countries known for their issues of debt, inflation and financial instability, such as Greece and Italy. But while the two European countries have seen conditions bottom up and, In case of Greece Even after reforms began, the US appears to be making little progress in fighting its own debt accumulation.
The IMF report analyzed debt as a percentage of GDP, showing that the US is set to surpass both countries with its debt-to-GDP ratio by 2030. At that time, the IMF estimated that the US would have the highest debt-to-GDP ratio of any country on Earth.
And despite claims by Donald Trump and his Republican allies in Congress to the contrary, his administration has contributed to that imbalance by increasing new spending in the form of a tax cut extension and funding for the President’s mass deportation efforts, two of the biggest items in the President’s “One Big Beautiful Bill” passed earlier this year.
That legislation funded a massive expansion of U.S. Immigration and Customs Enforcement (ICE), while also extending the 2017 Republican tax cuts, which benefited wealthy Americans and corporations more than middle-income and lower-income families.
It also largely follows DOGE’s window-dressing efforts, Donald Trump’s attempt to let Elon Musk and his cronies wade through the federal government in search of allegedly wasteful spending. A politico Investigation found in August that only a small portion of the contracts allegedly canceled by DOGE operators were verifiably liquidated, with the money remaining in the coffers of relevant federal agencies – not returned to the treasury.
A new York Times This month’s report revealed that no one in Washington knows the real number of federal dollars “Saved” by DOGE. – Not a congressional appropriator, and not an independent budget supporter, even though the White House’s own numbers are wrong, Probably this has been done intentionally.
As a result of those factors and others, last week the Treasury announced that US debt is now climbing at its highest rate outside of the COVID-19 pandemic, when federal spending was supercharged in the American Rescue Act and through other measures taken to stabilize the economy amid lockdowns, supply chain shortages and business closures. In the same report, the Treasury said the US national debt reached $38 trillion, a new record high.
For six consecutive years, the US federal budget deficit has exceeded $1 trillion; It was $1.8 trillion in fiscal 2025, and estimates for this current fiscal year (which began October 1) range from $1.7 trillion to $2.2 trillion.
According to the Government Accountability Office, “By 2044, without changes in fiscal policy, interest costs will exceed spending for Social Security (the largest federal program).”
White House officials and Trump’s allies in his Cabinet and Congress claim the figures may be much higher. In August, the administration claimed tariff revenues would reduce the federal budget deficit by $4 trillion over 10 years, and Treasury Secretary Scott Besant said this week that federal agencies have made progress in cutting spending as 2025 approaches.
Making the announcement before the news network at the IMF/World Bank annual meeting in Washington, he told Fox Business: “I think we can make substantial progress again.” [next year]“In cutting the US deficit-to-GDP ratio.
Experts say the federal debt affects factors in the economy, including interest rates and inflation, in ways that most Americans often don’t realize. This makes future federal investments in services and programs more expensive.
“We spent $4 trillion on interest over the last decade, but will spend $14 trillion over the next ten years,” Michael Peterson of the Peter G. Peterson Foundation told the AP in a statement. “The costs of interest crowd out vital public and private investments in our future, hurting the economy of every American.”
His foundation said in an analysis this week: “Three consecutive downgrades of US credit ratings should concern our elected leaders. For decades, the United States has seen significant benefits from keeping the dollar as the world’s reserve currency. Unless we change course and improve our fiscal position, we could put that position at risk.”