US debt surges past $39 trillion, weeks into Iran war
The US national debt has reached a record US$39 trillion (US$A55 trillion), a milestone that comes just weeks after the US-Israeli war in Iran.
The unprecedented figure released Wednesday highlights competing administration priorities, from passing a massive tax bill to increasing defense spending and immigration enforcement to reducing the debt; Donald Trump has promised to do the latter both as a candidate and as president.
The Government Accountability Office outlines some of the effects of rising government debt on Americans; This includes higher borrowing costs for things like mortgages and cars, lower wages from businesses with less money to invest, and more expensive goods and services.
Advocates of balanced budgets also warn that the trend of borrowing more and paying more interest over the long term will leave Americans facing tougher financial trade-offs down the line.
The trajectory of rising costs is also worrying. Federal debt has increased under both Republican and Democratic presidents; the latest wars were fueled by large-scale pandemic spending and tax cuts.
The US national debt reached US$38 trillion (US$54 trillion) five months ago, and US$37 trillion (US$52 trillion) two months ago.
The war in Iran has cost the United States more than $US12 billion ($A17 billion) so far, White House economic adviser Kevin Hassett estimated on Sunday. It is not clear when the war will end.
Representatives of the White House and Treasury Department did not immediately respond to The Associated Press’ request for comment on the debt milestone on Wednesday.
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