U.S. debt surpasses $37 trillion, reaching a serious turning point in the economy

America’s debt has surpassed the $37 trillion mark, marking a significant turning point in the global economy. This rapid expansion of the enormous national debt is not just a matter of rising numbers but raises fundamental questions about the sustainability of the U.S. economy and the stability of the entire global financial system.

The Mechanism Behind the Continually Growing National Debt

Several structural factors underlie the expansion of America’s debt to this extent. Uncontrollable fiscal spending and increasing obligations not only make annual budget balancing difficult but also generate cumulative debt pressure. As expenditure management shortcomings and tax revenue gaps widen, issuing government bonds to fill the gap has become the norm.

This situation creates a vicious cycle of inflationary pressures, rising interest rates, and increasing borrowing costs. While concerns about financial market instability grow, fundamental fiscal reforms are delayed due to political conflicts of interest.

Serious Ripple Effects on the Global Economy

America’s debt problem is no longer confined to domestic issues. The declining creditworthiness of the U.S. government, which supports the dollar-based international financial system, directly impacts global markets. Chain reactions such as credit rating downgrades, sharp rises in borrowing costs, and capital outflows could occur.

Emerging markets and European financial institutions may also be forced to reassess risks associated with declining U.S. Treasury values, potentially triggering fluctuations in global financial markets.

Urgent Need for Fiscal Reform and Long-term Strategies

Policy makers and economists must consider comprehensive measures to stabilize this crisis. It is essential to go beyond short-term remedies and undertake fundamental reforms of expenditure structures, tax systems, and develop medium- to long-term budget strategies. Addressing America’s debt issue is a critical challenge that will significantly influence not only the U.S. economy but also the stability of the global economy.