United States National Debt Crisis: Donald Trump has won a landslide victory in the presidential elections held in America. He will take oath as President for the second time in January 2025. But before Trump sits on the throne of America, the biggest challenge facing him is America’s national debt which has crossed 36 trillion dollars. America’s debt has increased by one trillion dollars in just four months. The situation is such that every American citizen has an outstanding loan of more than one lakh dollars.
1 lakh dollar loan on an American citizen
Last week, the Treasury Department released data on America’s outstanding debt. According to this data, the mountain of debt on America is getting bigger and bigger. US national debt ( National Debt Has reached 36 trillion dollars. Whereas in June 2024, America had an outstanding debt of 35 trillion dollars. This means that the debt burden increased by one trillion dollars in just four months. And America’s debt is increasing by 3 trillion every year. According to this figure of debt outstanding on America, every American citizen is burdened with a debt of one lakh dollars (84 lakh rupees).
One trillion dollars interest has to be paid annually
Due to America being stuck in the debt trap, every year the government there has to pay one trillion dollars in interest. Which is more than the US government’s spending on defense, infrastructure, education, poverty alleviation programs, social security and Medicare.
Why did the debt burden increase?
It is not that America’s debt burden has increased during the tenure of President Joe Biden. When the Biden government came to power, America had a debt of $ 26.9 trillion and during his tenure the debt burden has increased by $ 9 trillion. When Trump last came to power, America had a debt of 19 trillion dollars. He had promised to reduce the debt during his previous tenure but it increased. America’s debt burden has increased due to wasteful spending by many previous governments.
Tax burden will increase on American citizens
America’s fiscal deficit has reached several trillion dollars. The current debt burden on America was seen in the last year of the Second World War. Due to increasing debt burden, the US government will have to allocate more money in its budget for interest payments. At the same time, the government will have to impose more taxes on its citizens. At the same time, Donald Trump’s announcement during the election campaign to deport citizens of other countries living in America illegally, if implemented, could deepen America’s debt crisis because to fulfill this promise, the Trump administration is Will have to spend billions of dollars. To control the debt crisis, the new government will have to cut expenditure by 8 trillion dollars in the budget, only then America will be able to come out of the debt crisis.
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