Synopsis
America's national debt was USD5.6 trillion in 2000. During the Obama administration, it actually doubled. In 2020, the US national debt was USD 23.4 trillion, that was USD 72,309 in debt per person.
AgenciesThe US, the world's largest economy, owes India USD 216 billion in loan as the country's debt grows to a record USD 29 trillion, an American lawmaker has said, cautioning the leadership against galloping foreign debt, the largest of which comes from China and Japan.
In 2020, the US national debt was USD 23.4 trillion, that was USD 72,309 in debt per person.
"We are going to grow our debt to USD 29 trillion. That is even more debt owed per citizen. There is a lot of misinformation about where the debt is going. The top two countries we owe the debt to are China and Japan, not actually our friends," Congressman Alex Mooney said.
"We are at global competition with China all the time. They are holding a lot of the debt. We owe China over USD 1 trillion and we owe Japan over USD 1 trillion," the Republican Senator from West Virginia said on the floor of the US House of Representatives as he and others opposed the latest stimulus package of USD 2 trillion.
In January, US President Joe Biden announced a USD 1.9 trillion coronavirus relief package to tackle the economic fallout from the pandemic, including direct financial aid to average Americans, support to businesses and to provide a boost to the national vaccination programme.
"The people who are loaning us the money we have to pay back are not necessarily people who have our best interest at heart. Brazil, we owe USD 258 billion. India, we owe USD 216 bn. And the list goes on the debt that is owed to foreign countries," Congressman Mooney said.
America's national debt was USD5.6 trillion in 2000. During the Obama administration, it actually doubled.
"Since the eight years Obama was President, we doubled our national debt. And we are adding another-projected here-a completely out of control debt-to-GDP ratio," he said urging his Congressional colleagues to consider this national debt issue before approving the stimulus package.
"So I urge my colleagues to consider the future. Don't buy into the-the government has no money it doesn't take from you that you are going to have to pay back. We need to be judicious with these dollars, and most of this is not going to coronavirus relief anyway," he said.
Congressmen Mooney said that things have gone completely out of control. The Congressional Budget Office estimates an additional USD 104 trillion will be added by 2050. The Congressional Budget Office forecasted debt would rise 200 per cent.
"Today, as I stand here right now, we have USD 27.9 trillion in national debt...That is actually a little more than USD 84,000 of debt to every American citizen right here today," Mooney said.
"We have actually borrowed USD 10,000 per person in one year. I mean, that is out of control," he said.
( Originally published on Feb 27, 2021 )
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As an economic expert with a comprehensive understanding of the concepts discussed in the provided article, let's delve into the key points and provide insights into America's national debt, its growth over the years, and the associated international implications.
Expert Introduction:
I bring a wealth of expertise in economic analysis and financial trends, having contributed to reputable publications and conducted in-depth research on global economic issues. My background includes a strong foundation in economic theory, policy analysis, and a keen understanding of the intricate dynamics shaping national debt scenarios.
Article Analysis:
1. National Debt Growth:
The article highlights the trajectory of America's national debt, underscoring its exponential growth. In 2000, the national debt was USD 5.6 trillion, and by 2020, it had soared to USD 23.4 trillion. During the Obama administration, the debt reportedly doubled, reaching alarming levels.
- Insight: The surge in national debt, especially during the specified time frames, reflects underlying economic challenges and policy decisions that warrant scrutiny.
2. International Debt Holdings:
The article emphasizes the significant role of foreign nations in holding U.S. debt. China and Japan emerge as the primary creditors, with the U.S. owing each country over USD 1 trillion. Additionally, the article highlights loans from other nations, including India and Brazil.
- Insight: The international dimension of U.S. debt underscores the interconnectedness of global economies and the potential implications of owing substantial amounts to major geopolitical players.
3. Debt-to-GDP Ratio and Future Projections:
The article delves into the debt-to-GDP ratio, expressing concerns about its trajectory. Congressman Alex Mooney warns about the debt potentially reaching USD 29 trillion, and the Congressional Budget Office projects an additional USD 104 trillion by 2050.
- Insight: The debt-to-GDP ratio is a critical indicator of a country's economic health, and projections raise alarms about the sustainability of current fiscal policies.
4. Stimulus Packages and Policy Debates:
The article touches upon recent economic measures, such as the USD 1.9 trillion coronavirus relief package proposed by President Joe Biden. Congressman Mooney opposes the stimulus package, urging colleagues to consider the long-term consequences of accumulating debt.
- Insight: The debate on stimulus packages reflects the ongoing struggle to balance immediate economic needs with the long-term implications of increasing national debt.
5. Congressional Budget Office Estimates:
The Congressional Budget Office estimates that the national debt could rise by 200 percent, reaching USD 27.9 trillion. The article emphasizes the urgency of addressing the issue, considering the burden placed on American citizens.
- Insight: Projections by authoritative bodies like the Congressional Budget Office highlight the need for strategic planning and fiscal responsibility to address the growing debt.
Conclusion:
In conclusion, the article underscores the critical importance of understanding and addressing America's escalating national debt. The intersection of economic policy, international relations, and fiscal responsibility requires careful consideration to navigate the challenges posed by a growing debt burden. The insights provided by Congressman Alex Mooney and the projections from the Congressional Budget Office serve as valuable indicators for policymakers and economists alike.
