US National Debt Hits $38 Trillion Amid Government Shutdown Record Surge

The United States' gross national debt has surpassed $38 trillion amid a prolonged federal government shutdown, marking the fastest $1 trillion increase outside of the COVID-19 pandemic period. Experts like Kent Smetters warn that this accelerating debt accumulation could lead to higher inflation, diminishing Americans' purchasing power and making it harder for future generations to achieve goals like homeownership. The Government Accountability Office highlights the resulting impacts, including higher borrowing costs, lower wages due to reduced business investment, and increased prices for goods and services. Although the Trump administration claims its policies are helping to reduce government spending and shrink the deficit, concerns persist about the sustainability of current fiscal policies, particularly the rising interest costs on the debt, which reached $1.21 trillion in fiscal year 2025. Economists emphasize the growing debt-to-GDP ratio, expected to rise from 125% currently to 156% by 2055, as a key risk factor for economic stability. Prominent financial leaders and policy advisors continue to warn about the urgent need for fiscal reform to prevent worsening economic consequences.