Recession 2024: World’s super power America is head deep in debt, you will be shocked to know
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Recession 2024: Everyone knows the story of Pakistan’s collapse. Due to his mistakes, he is getting buried under the burden of debt. But do you know that not only Pakistan, the world’s largest economy America is also deeply in debt. You will be surprised to know that today America has so much debt that with that much money, Pakistan will come out of poverty and will change the face of the entire country. America, which till yesterday was giving loans to other countries, is today itself immersed in a debt of 34,000 billion dollars. According to the report of the US Finance Department, the debt of Super Power America has increased by about 10 trillion dollars in the last three years. At present it has to pay only $1.8 billion in interest. Whereas, by 2020, he was paying $900 million as interest. America’s total debt has reached 123 percent of the country’s GDP. If the debt continues to grow in this manner, the total debt of the economy will double in a few years. In such a situation, experts estimate that once again the global economic recession may start from America.
Government work may stop
The report of the US Finance Department says that without the annual budget, some part of the government’s work may come to a standstill. Actually, Republican lawmakers and the White House had made an agreement in June 2023. According to this, both had agreed to temporarily remove the loan limit. With this, the risk of historical mistake or ‘default’ was averted. This agreement is going to last till the year 2025. America had estimated that the gross federal debt could reach $34 trillion by the year 2028-29. However, due to the Covid pandemic, the debt level reached this level several years ago.
No effect will be seen at present
At present, the debt does not seem to have any impact on America’s economy. Investors are ready to lend to the federal government. With this, the government can continue its work without increasing any kind of tax. However, experts believe that in the coming years, the government may face problems due to debt and there may be brakes on many big programs like national security, social security and health. However, if seen in dollar or fiscal terms, America currently has the highest debt. But, if seen in proportion to GDP, Japan, which is among the developed countries, has the highest debt. Currently, Japan has a debt of 260 percent compared to its GDP.
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