The U.S. debt now equals $229,000 per household—and a hefty tax hike looms as the most probable outcome

Core Insights - The average American household's share of federal borrowings is now equal to half the median price of their homes, and this figure is rising rapidly [1] - The U.S. is experiencing a significant shift in borrowing patterns, moving from stable debt levels to alarming increases post-COVID, with a primary deficit emerging due to excessive spending [1] - Federal borrowings have surged from $17 trillion at the end of 2019 to $30.9 trillion, marking an 81% increase, with debt as a share of GDP now nearly 100% [2] - Debt per household has reached $229,000, and if families were to pay the prevailing interest, it would amount to $7,700 annually, representing 9% of their average income [3] - Projections indicate that by 2035, the debt-to-GDP ratio could rise to around 135%, with total borrowings potentially reaching approximately $60 trillion [3]