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US public debt surpasses US$40 trillion for first time
Debt outstanding rose to US$40.05 trillion as of Tuesday’s close, after topping US$30 trillion in January 2022.
Total US public debt surpassed US$40 trillion for the first time, reaching US$40.05 trillion as of the close of business on Tuesday, according to a US Treasury Department release cited by SCMP Economy.
The article says the climb to US$40 trillion has been rapid, with public debt up by a third in less than five years. It also notes that the US$30 trillion threshold dates back to January 2022, underscoring how quickly the balance sheet has expanded.
SCMP Economy attributes the buildup to lawmakers’ reluctance to address historically wide deficits, saying Republicans have opposed revenue-raising tax increases and both parties have been reluctant to agree to politically difficult cuts to healthcare and retirement benefits for seniors.
The outlet also points to a pattern of action only after potential financial-market disruption, adding that US Treasury Secretary Scott Bessent tied his political involvement to the need to tackle deficits running at a pace described as unprecedented outside major wars, pandemics, or depressed job markets.