As national debt accelerates to $38 trillion, watchdog warns it’s ‘no way for a great nation like America to run its finances’

Core Insights - The U.S. national debt has exceeded $38 trillion, marking a $1 trillion increase in just over two months, the fastest growth rate outside the pandemic [1] - The acceleration in debt growth is attributed to deficit spending, rising interest costs, and the economic impact of the ongoing government shutdown [2] Debt Growth and Fiscal Responsibility - The current pace of debt accumulation is twice as fast as the rate of growth since 2000, indicating a significant fiscal challenge for lawmakers [2] - Interest payments on the national debt have reached approximately $1 trillion annually, making it the fastest-growing category in the federal budget [3] Long-term Fiscal Implications - Over the past decade, the government has spent $4 trillion on interest, which is projected to increase to $14 trillion over the next 10 years, potentially crowding out essential public and private investments [3] - Delays in fiscal decision-making are exacerbating long-term costs, with Treasury reports warning of an "unsustainable fiscal path" [4] Economic Impact of Debt - The rising federal debt is exerting upward pressure on inflation and interest rates, which could constrain economic growth and increase borrowing costs for households and businesses [5] - An analysis by EY indicates that the trajectory of national debt may lead to sustained job and income losses over time [5]