The national debt of the United States has surpassed $31 trillion for the first time in history, according to Treasury Department data published on Oct. 4.
Data showed that the total national debt was $31.123 trillion as of Oct. 3, after passing the $30 trillion mark just nine months ago in late January.
President Joe Biden and Congress increased government borrowing amid the COVID-19 pandemic in order to prop up the economy amid job losses and chronic supply chain disruptions, while further borrowing was undertaken to help stimulate the economy coming out of lockdown.
Prior to the pandemic, at the end of 2019, the national debt stood at $22.7 trillion. Just a year later, it had risen to $27.7 trillion and has continued to add gains since.
However, the Committee for a Responsible Federal Budget (CRFB) noted in a statement on Oct. 3 that the United States has now overcome the most severe challenges of the pandemic but that the Biden administration continues to borrow huge amounts of money.
“This is a new record no one should be proud of,” Maya MacGuineas, president of the CRFB, said in a statement. “In the past 18 months, we’ve witnessed inflation rise to a 40-year high, interest rates climbing in part to combat this inflation, and several budget-busting pieces of legislation and executive actions.”
“Just in 2022, Congress and the President have approved a combined $1.9 trillion in new borrowing, and President Biden has approved $4.9 trillion in new deficits since taking office. We are addicted to debt,” MacGuineas said.
Inflation reached 8.3 percent year-over-year in the United States in August, prompting the Federal Reserve to continue with its aggressive interest rate hikes in order to bring the cost of living down. The Central bank rolled out another 75 basis-point rate hike on Sept. 21.
‘Should Commit to No Further Borrowing In 2022’
However, such hikes make government borrowing more expensive. The budget deficit is expected to be about $1 trillion in 2022.
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