The U.S.’s debt reached a record $38 trillion on Wednesday, according to the Associated Press.
It is the fastest accumulation of a trillion dollars in debt outside of the COVID-19 pandemic. The U.S. was in debt by $37 trillion in August.
Growing debt leads to higher inflation, according to a source cited in the report, which erodes Americans’ purchasing power.
Some of the other effects of rising debt, according to the Government Accountability Office, include higher borrowing costs for mortgages and cars, lower wages and more expensive goods and services.
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The U.S. hit $34 trillion in debt in January 2024, $35 trillion in July 2024 and $36 trillion in November 2024.
