The United States national debt has ballooned over 10% in the 2019-20 fiscal year, starting October 1, climbing from $22.7 billion to $25 trillion. According to the data provided by the US Treasury, the national debt is growing at a rapid speed of $1.7 billion per day and $1.2 million per minute. The huge upsurge in the national debt is a result of the government’s spending to lessen the impact of coronavirus on the US economy.
The US debt to GDP ratio is now 117%.
The US national debt to gross domestic product (GDP) ratio has been skyrocketing in the last few years. Currently, the US debt to GDP ratio stands at 117%, which is very close to the record set after world war II ended, 118.9%. In the last five years, the debt ceiling has been increased four times. The debt ceiling in the defined maximum amount of debt that the government can carry. The debt ceiling is expected to rise again.
The US national debt will increase further in the wake of the pandemic.
The US Treasury earlier announced that it would further provide a $3 trillion stimulus package to revive the free-falling US economy. Jerome Powell, chairman of the Federal Reserve, recently pointed out that there needs to more economic stimulus as fears that the economic activity will fall at an unprecedented rate in the second quarter of the year. According to the Bloomberg report, Jerome Powell said in a video press conference that the economy would need support from everyone if the recovery has to be a robust one.
During the 2016 campaigning, the US President Donald Trump had promised to eliminate all the national debt in the eight years. Since Donald Trump was elected as the United States president, the national debt has increased by 5%. Recently, Donald Trump announced that he would tackle the mounting national debt if he re-elected in the comping presidential elections.
