Source: Fortune
Summary
The United States has surpassed a milestone in debt, with its public liabilities exceeding the size of its economy for the first time since World War II, according to the Committee for a Responsible Federal Budget (CRFB). The country’s debt held by the public, estimated at $31.27 trillion, has surpassed its annual GDP of $31.22 trillion. This development raises concerns about the country’s credit rating, with Fitch Ratings warning that the U.S.’s debt burden risks slipping due to its high debt burden. The agency maintains the U.S. at a AA+ rating but notes that years of fiscal malpractice are a growing constraint on the rating.
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The numbers tell one story.
The U.S. debt burden has exceeded the size of its economy, a milestone not seen since World War II. Fitch Ratings warns that the country’s credit rating risks slipping due to its high debt burden. The agency maintains the U.S. at a AA+ rating but notes that years of fiscal malpractice are a growing constraint on the rating. The CRFB estimates that President Donald Trump’s signature policy package will add $4.7 trillion to national debt through 2035. The country’s deteriorating credit rating comes with real implications for the economy, including higher borrowing costs for households.
The U.S. is now in a league of its own when it comes to its debt burden.
Author: Evan Null
