America’s debt crisis
When Donald Trump gave the slogan “Make America Great Again”, millions of Americans and people around the world expected a new economic revolution. But it has been the opposite. Such a burden on America’s economy is continuously increasing, which is putting a question mark on the future of the world’s most powerful country. We are talking about the total debt of the country, which has now reached scary levels.
America’s total debt has now touched the figure of 105.2 trillion dollars. To understand it in simple language, this debt is approximately 3.5 times the total gross domestic product (GDP) of America. This is an alarming sign for any economy.
The debt of the Federal Government is continuously increasing in America. Because of this, billions of dollars are being wasted every year in interest. This huge wall of debt is not just on the shoulders of the federal government, but also includes the liabilities of common citizens. Of the total debt, the federal government’s debt is $38.2 trillion, which is setting new records every year. Additionally, it also includes people’s personal debt ($26.4 trillion), mortgage debt ($21.3 trillion) and student education debt ($1.8 trillion).
USA will be in debt of $50 trillion by 2028
In America, the debt of the Federal Government is continuously running like an unbridled horse. Just looking at the figures of this loan is enough to understand how serious the situation is.
- In October 1995 this debt was 4.9 trillion dollars.
- By October 2005 it almost doubled to $8 trillion.
- In the next ten years, by October 2015, this figure increased to $18.1 trillion.
- In 2025, it will increase rapidly to the level of 38.2 trillion dollars.
- It is estimated that by 2028 the federal government’s debt will reach $50 trillion.
According to economists, this growth is not going to stop here. The biggest matter of concern is that billions of dollars are being spent every year to pay interest on this huge loan. America has to pay billions of dollars every day only in the form of interest. Just imagine, if this money had been invested in building roads, improving education, health services or new technology instead of paying interest, how different the picture of America would have been.