GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
Its one of many issues the nation is currently facing and attempting to figure out a solution forward.
Before that, the $1 trillion move higher from $31 trillion took about eight months.
GOBankingRates checked in with a few economists to find out.
How Did We Get Here?
The debt has accumulated over decades due to persistent budget deficits, where government expenditures surpass revenues.
They make borrowing money way too easy and often come with sky-high interest rates, Schmied said.
Where Did All This Money Go?
Other areas of spending included education funding, military and defense, as well as public infrastructure costs.
But one of the biggest contributing factors to the U.S. debt?
They were essential to keeping the economy afloat but came at a cost, Schmied added.
This increased spending was necessary to prevent economic collapse but added trillions to the national debt.
Why Should You Care?
Inflation erodes purchasing power, making everyday goods and services more expensive for consumers.
Schmied described how this mountain of debt could mean potential tax hikes down the line.
Higher taxes could shrink our disposable income, making it harder to save, spend, or invest.
This is a big deal for every American household our financial health could take a hit.
More From GOBankingRates
Share This Article:
