US National Debt Nears $50 Trillion... Presidential Candidates' Solutions Remain 'Unclear'

The size of the United States national debt has surpassed $35 trillion (approximately 48,000 trillion KRW) for the first time in history. The main factors cited are the expansion of social security and Medicare spending due to population aging and the prolonged high interest rates increasing interest repayment burdens. Concerns are rising as presidential candidates from both parties have yet to present any substantial solutions to the fiscal deficit.

According to a daily report released by the U.S. Treasury Department on the 29th (local time), the total U.S. national debt exceeded $35 trillion, setting a new record. This comes just six months after surpassing $34 trillion in January. The Congressional Budget Office (CBO) projects that the national debt will grow to $56 trillion in ten years.

[Image source=AFP Yonhap News]

Maya McGuinness, chair of the bipartisan think tank 'Committee for a Responsible Federal Budget (CRFB),' lamented in a statement that "(the government) continues reckless borrowing without bending," adding, "Despite all the risks and warning signs, it seems the deaf ears are not being alerted." Desmond Lachman, senior fellow at the American Enterprise Institute (AEI), told Xinhua News Agency, "There is no doubt that the U.S. fiscal deficit is heading down an unsustainable path."

Experts evaluate that the biggest cause of this fiscal deficit is the government's massive spending on social security and Medicare. The Peter G. Peterson Foundation, which studies federal fiscal policy, explained, "The fiscal deficit is primarily caused by the aging of the baby boomer generation, rising healthcare costs, and a tax system insufficient to fund government support programs." The Washington Post (WP) pointed out that efforts to cut social security and Medicare spending are blocked by bipartisan resistance mindful of public opinion.

The burden of interest repayments due to prolonged high interest rates is also one of the factors accelerating the fiscal deficit. The CBO predicts that the government's annual interest costs will increase from $892 billion this year to $1.7 trillion in 2034. This amount is comparable to the budget the U.S. spends on Medicare. Additionally, the CBO forecasted that the fiscal deficit this year will reach $1.9 trillion, making it the third-largest in U.S. history after 2021, when government relief program spending peaked due to the pandemic.

Experts express concern that presidential candidates have not presented clear plans to resolve the fiscal deficit. Both Republican and Democratic presidential candidates, former President Donald Trump and Vice President Kamala Harris, appear to oppose cuts to social security benefits, seemingly mindful of voter sentiment. Furthermore, former President Trump is even proposing large-scale tax cuts, which are expected to widen the fiscal deficit. Vice President Harris opposes tax cuts for the wealthy and is pushing for wealth taxes and corporate tax rate increases, but she also proposes middle-class tax credits and raises in public school teacher salaries, which experts say are not fundamental solutions to the fiscal deficit.

Chair McGuinness criticized, "Debt is one of the serious risks we face," adding, "It is unacceptable to hush this issue and avoid proposing solutions just because it is election season." Michael Peterson, CEO of the Peter G. Peterson Foundation, also pointed out, "With less than 100 days until the election, an additional $1 trillion government deficit is expected even in this short period," emphasizing, "We cannot keep covering up this problem indefinitely."

This content was produced with the assistance of AI translation services.