U.S. National Debt Hits $38 Trillion Amid Government Shutdown

UPDATE: The U.S. national debt has skyrocketed to a staggering $38 trillion as of Wednesday, coinciding with an ongoing federal government shutdown. This record debt level marks the fastest accumulation of a trillion dollars in recent years, second only to the surge during the COVID-19 pandemic.

Just two months ago, the debt stood at $37 trillion, indicating a rapid increase that has raised alarms among economists. The latest figures were released in a report by the Treasury Department, which tracks the nation’s financial activities daily.

Experts are sounding the alarm about the implications of this soaring debt. Kent Smetters, a professor at the University of Pennsylvania and former Treasury Department official, warns that rising debt leads to higher inflation, diminishing the purchasing power of everyday Americans. “I think a lot of people want to know that their kids and grandkids are going to be in good, decent shape in the future,” he stated, emphasizing the need for stable financial conditions for future generations.

The Government Accountability Office has documented several adverse effects of increasing government debt, including elevated borrowing costs for essential items like mortgages and cars, reduced wages due to businesses having less capital for investment, and inflated prices for goods and services.

“Along with increasing debt, you get higher interest costs, which are now the fastest growing part of the budget,” said Michael Peterson, chair and CEO of the Peter G. Peterson Foundation. “Interest costs crowd out important public and private investments in our future, harming the economy for every American.”

In the wake of this fiscal crisis, the Trump Administration asserts that its policies are aimed at curbing government spending and shrinking the national deficit. According to a new analysis, the cumulative deficit from April to September totaled $468 billion, the lowest since 2019.

Treasury Secretary Scott Bessent took to social media to communicate these developments, underscoring that efforts are underway to bolster economic growth and reduce inflation.

As the national debt reaches this alarming milestone, the Joint Economic Committee reports that the debt has been increasing at a staggering rate of $69,713.82 per second over the past year.

The urgency surrounding the government shutdown adds to the complexities of the situation, with many Americans worried about the long-term consequences of such a heavy debt load. The implications for interest rates and economic stability are profound, potentially impacting everything from housing markets to everyday consumer pricing.

With the national debt having crossed significant thresholds in recent years—$34 trillion in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024—the trajectory raises critical questions about fiscal responsibility moving forward.

As this story develops, observers will be keenly watching for government responses and any measures that might be taken to address this escalating fiscal crisis. The conversation around America’s financial future is more pressing than ever, with immediate impacts on families and businesses across the nation.