How Much Money You’d Owe If the National Debt Was Divided by Household
If the total U.S. debt were divided by every household in the country, each household would get about $252,000, according to a September tweet from The Kobeissi Letter.
See: How Far a $100,000 Salary Goes in America’s 50 Largest Cities
Explore: 6 Genius Things All Wealthy People Do With Their Money
For the first time in history, the U.S. national debt hit $33 trillion in September, per the U.S. Department of the Treasury. We add about $833 million in debt per hour, The Kobeissi Letter noted, and the U.S. pays more than $2 billion per day in interest expense.
Since September, data from Debt to the Penny showed the U.S. debt has grown to nearly $34.25 trillion.
The U.S. has always carried debt, said Fiscal Data, which allows the government to pay for important programs and services for the public. The debt ceiling is a restriction imposed by Congress on the amount of outstanding debt the federal government can have. Typically, the federal government cannot increase the amount of outstanding debt over the debt limit. Last year’s debt limit deal suspended the nation’s borrowing limit until January 2025, meaning the country’s debt can grow beyond the ceiling.
A new forecast released from the nonpartisan Congressional Budget Office (CBO) said the federal government’s national debt could grow even bigger, potentially reaching $54 trillion by 2034, ABC News reported.
High-interest rates have impacted not only everyday consumers, but also the government’s expenditures. Starting next year, interest costs related to the overall economy will be larger than at any point since 1940, according to ABC News. The CBO expects the Federal Reserve to start lowering interest rates in the middle of this year.
But there’s good news. The CBO said legislation enacted last year will result in a lower budget deficit — the difference between how much money the federal government brings in versus how much it spends — than previously expected. The CBO noted the smaller budget deficit is due to a strong economy and jobs market, but it’s still not enough to stop the budget deficit from growing by $1.6 trillion this year and $2.6 trillion over the next decade.
More From GOBankingRates
What Makes a Good Bank in 2024, According to a Banking Expert
I'm a Personal Finance Writer: These Are the Worst Money Mistakes I Made in 2023
This article originally appeared on GOBankingRates.com: How Much Money You’d Owe If the National Debt Was Divided by Household
