The "time bomb" of the US economy

VTV.vn - Within just 2 months since the total debt reached 37,000 billion USD in August 2025, the US continued to borrow another 1,000 billion USD, raising the total public debt to 38,000 billion USD.

The US national debt has been increasing at an average rate of $69,713.82 per second over the past year.

With the federal government still in a state of shutdown, the total national debt of the United States surpassed the 38,000 billion USD mark on October 22 (local time) - a record number reflecting the rapid increase in debt unprecedented in the history of the United States outside the COVID-19 pandemic.

According to data from the Ministry of Finance , within just 2 months since the total debt reached 37,000 billion USD in August 2025, the US continued to borrow another 1,000 billion USD, bringing the total public debt to 38,000 billion USD.

Previously, according to a January 2025 statement by Senator Rand Paul, Chairman of the Senate Homeland Security Committee, on average during the pandemic, the time when the most money had to be spent, including 8 years under the two US Presidents Donald Trump and Joe Biden, every 6 months the US public debt increased by 1,000 billion USD.

Inflation and borrowing costs will increase

Kent Smetters, an economics professor at the University of Pennsylvania and a former Treasury official under President George W. Bush, said the growing burden of public debt would lead to higher inflation over time, reducing the purchasing power of Americans.

According to the Government Accountability Office (GAO), rising public debt brings with it many consequences such as higher borrowing costs for things like home or car loans, lower wages because businesses have less capital to invest, and higher prices for goods and services.

“Many Americans worry about their children and grandchildren – whether the next generation will be able to afford a home,” Mr. Smetters said. “As inflation piles up over time, consumer purchasing power is eroded, and the dream of homeownership becomes more and more distant.”

Meanwhile, the Trump administration continues to insist that its new fiscal policies are helping reduce government spending and narrow the huge budget deficit. An internal Treasury Department report shows that the cumulative deficit will be $468 billion between April and September 2025, the lowest level since 2019.

According to the Joint Economic Committee of Congress, the US national debt has been increasing at an average rate of $69,713.82 per second over the past year.

Interest costs: The "time bomb" of the US economy

Michael Peterson, President of the Peter G. Peterson Foundation, commented: "The fact that the public debt reached $38,000 billion during the government shutdown is a worrying sign that lawmakers have failed to fulfill basic fiscal responsibility."

According to Mr. Peterson, interest costs are now the fastest growing part of the national budget: “The US spent $4,000 billion on interest over the past 10 years, but in the next 10 years that number will reach $14,000 billion. Interest costs are 'swallowing' important investments in the future, hurting the economy of everyone.”

The debt buildup shows no signs of stopping.

In less than two years, the US public debt has increased by more than 4,000 billion USD. Specifically, January 2024: 34,000 billion USD; July 2024: 35,000 billion USD; November 2024: 36,000 billion USD; August 2025: 37,000 billion USD and October 2025: 38,000 billion USD.

Experts warn that without strong spending control measures, the United States will soon face a "public debt bomb", threatening its global financial position and investors' confidence in the USD, which is the world's reserve currency.

Source: https://vtv.vn/qua-bom-hen-gio-cua-kinh-te-my-100251024090725935.htm