Just five months after hitting the $39 trillion mark, the national debt reached a record $40 trillion on Wednesday, raising concerns about how unchecked debt affects consumers, the Associated Press reported.
The AP said record debt is affecting the economy by raising borrowing costs for mortgages and cars and putting upward pressure on inflation.
The situation is challenging for lawmakers because a greater share of the federal budget is consumed by defense spending, social programs and growing interest on the national debt.
“If we want to improve our living standards, today and for the next generation, now is the time for lawmakers to put our nation on a more affordable and sustainable path,” said Michael A. Peterson, CEO of the Peter G. Peterson Foundation, a think tank that concentrates on fiscal issues.
