America’s debt is increasing rapidly every year. Now the national debt on America has crossed the $ 37 trillion dollars, which has raised a wave of concern in America. Every year only the cost of paying interest is increasing near 1 trillion dollars. It is being said that if the loan continues to grow like this for some time, then America’s budget can also be affected and America’s growth may stop.
Till June 20, there is so much debt on the US government, as the entire economy grows in a year. The Congress budget office estimates that without major reforms, the debt will increase by 156% of GDP by 2055. At the present level, the annual deficit of $ 2 trillion is promoting debt hike, which is promoting increased expenses and stable revenue growth.
What is the latest danger on America?
The biggest and latest threat on America is about interest. About 1 quarter of the income from total tax is now being spent in repaying the loan. This means that only less money will be saved for social security, medicare, national defense and infrastructure, these are sectors on which millions of Americans dependent.
America’s economy also crisis
The risk is not just about the budget cut. Economist warns that this loan may reduce private investment and increase the cost of borrowing and can cause economic growth. CBO estimates that if the loan burden is not controlled, GDP may decrease by $ 340 billion in the next decade. This can end the potential 1.2 million jobs and the salary hike in all sectors can be slow.
Dollar may fall
Increase in interest rates increases further losses. As global lenders start demanding high returns for American deficit funding, the cost of borrowing for all is increasing. The fiscal crisis is getting deeper. On the other hand, if the trust of investors on the government’s financial management capacity ends, then there may be a sharp jump or dollar decline in interest rates. This can cause damage to global level.
Still the economy of America is increasing
Even after the debt crisis increases, the American economy is still increasing, but its pace has slowed down. This year GDP growth estimates only 1.4% -1.6%, unemployment is increasing and remains above the goal of inflation. The scope of mistake is decreasing.
The comments of economists, business leaders of business world and comments of people like Alan Musk are now looking true. If America continues on this path, then it will not only have to pay its price to the coming generations, but it may have to bear the brunt long before.
How much has India given a loan?
In June last year, India had US Treasury Equities worth $ 241.9 billion (about 20 lakh crore rupees), making it the 12th largest foreign holder. It can also be said that India has given a loan of about 20 lakh crore rupees in lieu of America’s Treasury Bond.