Mounting U.S. deficit hampers global economic development

Cartoon by Ma Hongliang

The federal budget deficit was $1.8 trillion in fiscal year 2024 (from Oct. 1, 2023 to Sept. 30, 2024), which was $139 billion more than the shortfall recorded during fiscal year 2023, according to a report recently released by the U.S. Congressional Budget Office.

The report said the largest increase in outlays was for education during fiscal year 2024, followed by net outlays for interest on the public debt, which rose by $240 billion from last fiscal year to a total of $950 billion.

The huge deficit has worsened America's heavy debt burden. According to data from the website of the U.S. Department of Treasury, the federal government had over $35.7 trillion in federal debt as of Oct. 15.

The Committee for a Responsible Federal Budget, a nonpartisan watchdog group in the U.S., said the federal government now borrows $5 billion daily, and interest payments are soaring.

The mounting U.S. debt not only threatens America's long-term economic growth potential but also hampers global economic development.