A new analysis by global asset management firm Apollo reveals that the United States is paying an average of $3 billion daily in interest on its national debt, which currently exceeds $35 trillion.
This staggering figure underscores the gravity of the nation’s fiscal challenges, as the debt continues to grow at an alarming rate.
The Congressional Budget Office (CBO) projects that the US will add $1.9 trillion to its debt in 2024 alone, surpassing its initial estimate of $1.6 trillion. This increase is attributed to various factors, including aid for Ukraine and Israel, increased Medicaid spending, and President Joe Biden’s cancellation of $100 billion in student loan debt.
The CBO anticipates 2024 revenue of $4.9 trillion against expenses of $6.8 trillion, further widening the deficit.
The Peter G. Peterson Foundation identifies key drivers of the national debt, including demographics, healthcare costs, and inadequate revenues. The US spends nearly double the global average on healthcare per person, at $12,555 compared to $6,414 worldwide.
Additionally, the aging Baby Boomer generation is putting increased pressure on federal programs like Social Security, Medicare, and Medicaid.
While a potential Federal Reserve interest rate cut could provide some relief, experts suggest that the anticipated 0.25% reduction may have a limited impact on daily interest expenses.
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