The US debt continues to skyrocket and it’s costing Uncle Same more and more money just to make the interest payments.
The US public debt hit a record high of $21.145 trillion on the last day of May. Meanwhile, the cost of servicing all that debt also spiked, increasing by $26 billion through the first seven months of the fiscal year (October-April) compared with the same period last year.
This is a staggering amount of money. Here’s a visualization of $20 trillion courtesy of VisualCapitalist.
Yet despite this staggering amount of debt, a lot of people continue to shrug and yawn. In fact, some people argue that the debt doesn’t even matter. But of course, it matters. As we’ve talked about before, skyrocketing debt suppresses economic growth.
There was actually a pause in the growth of the debt in the spring. The US government hit the previous high in early April. An influx of revenue into the Treasury during tax season put a pause on the debt climb. As SRSrocco noted, the debt doesn’t climb in a straight line. It actually falls some days and weeks. But the overall trend continues steadily upward.