The US national debt has surpassed an astonishing $38 trillion, setting a new world record right amid a government shutdown. According to the AP, this marks the fastest accumulation of a trillion dollars since the start of the pandemic. The debt was $37 trillion in August, and by October, the United States had reached that remarkable milestone.
The math is simple. The US is accruing debt at an astonishing rate of $69,713.82 per second. This means that while you are reading this sentence, the country is adding several million dollars to its debt. Over the course of a year, that equates to roughly a trillion dollars spread out over 365 days, excluding weekends, but with accelerated growth.
Kent Smetters at the Penn-Wharton Budget Model cautions that the rising debt poses a risk of exacerbating inflation, undermining the purchasing power of American households. In practical terms, this means that you will probably pay more for your morning coffee tomorrow because the deficit is growing faster than the population.
However, the Trump administration claims that its fiscal policies are curbing spending and reducing the deficit. According to US Treasury Secretary Scott Bessent, the deficit between April and September was $468 billion, the lowest figure reported since 2019. Nevertheless, the total debt continues to climb as if it were a surefire investment of historic proportions.
For context, the debt was $34 trillion in January 2024. It increased to $35 trillion by July and to $36 trillion by November. If this pace persists, the debt is projected to reach $40 trillion by 2026.
