The fact that the United States has accumulated a lot of debts has been known for a long time. The country is changing presidents, each of whom promises to extinguish them in his campaign speeches. However, the national debt only continues to grow, and by the end of 2018 it reached a record value of $ 21.5 trillion.
American national debt: who owes the states
People far from the world of finance do not understand what the national debt is and to whom America owes such astronomical sums. In fact, everything is simple. Debts of the government of the country can be roughly divided into two large groups: domestic and state. The first category includes securities purchased by other federal agencies, such as the Social Security Fund. The second category is securities held by investors, various corporations, banks, local governments, and other governments.
The domestic debt of Americans is of little concern to anyone, since it affects only the economy within the United States. Fears are caused by their national debt, which has already exceeded $ 21 trillion. In just a year, it increased by 1.2 trillion. About 43% of this amount actually belongs to foreign governments, private investors and corporations.
Why the US national debt is growing
In many countries, the national debt in relation to GDP is no more than 60%. For Americans, it is much higher - 105%. There are several reasons. The first lies in the significant deficit of the US budget, which approached the mark of 3.5% of GDP. The second is a new tax reform that cuts deductions to the country's budget. The significant increase in national expenditures should also not be disregarded. All this together and led to the establishment of an absolute record in the size of the American national debt.
What America Will Do With Public Debt
Experts agree that in the coming years it will only increase, not decrease. Conservatives in the American Congress are outraged by the astronomical sums and the fact that the expenses of the team of the current President Donald Trump are completely out of control. This is what politicians see as the reason for the deficit.
Donald Trump himself said that the United States would soon begin to pay its debts. With such a message, he spoke to workers after the publication in the media of news about record values of the national debt. The president also noted that the situation was aggravated by the previous administrations of the White House. Trump has accused his predecessors of incompetence. He noted that previous American presidents made deals that could never be given the go-ahead. Trump motivated his opinion by the fact that at that time there were not the best conditions for trade, and the then government did not take any action to improve them. At the end of his speech, the president summed up that he would solve the problem with impressive public debt figures in a short time.
