In a staggering milestone for the United States, the national debt has now reached a record-breaking $34 trillion. This colossal figure comes at a time when Congress is about to engage in discussions about further spending. It's a rather puzzling situation, considering that the U.S. had already spent heavily to stabilize the economy during the pandemic, while also experiencing a drastic reduction in tax revenue due to significant tax cuts.
The graph illustrating the mountainous debt depicts a distressing trend, with spikes occurring during the 2008 financial crisis, the COVID-19 pandemic, and now, as the debt continues to mount. What makes this situation notable is that typically, borrowing increases when the economy is struggling, with elevated unemployment rates necessitating expenditures on benefits and bailouts. However, the current scenario showcasing elevated debt and budget deficits occurs when unemployment is low and GDP is flourishing.
