By Aditya Raghunath
Investing.com — It’s no secret that the US consumer economy runs on credit. Credit card use rates in the US are one of the highest in the world with over 65% of the population having one. But all of this debt needs to be repaid sometime.
And the US government has swiped its credit card to the tune of $29 trillion. The US government’s national debt was $23.2 trillion in 2020.
“We are going to grow our debt to USD 29 trillion. That is even more debt owed per citizen. There is a lot of misinformation about where the debt is going. The top two countries we owe the debt to are China and Japan, not actually our friends,” Republican Congressman Alex Mooney said.
The US owes over $1 trillion each to China and Japan. US President Joe Biden’s $1.9 trillion stimulus package, which will boost small businesses and help accelerate the vaccination program, has come under fire for the debt it will add to US books.
Mooney and other senators are opposed to the package and we’re highlighting the amount of stress the US was already under.
“The people who are loaning us the money we have to pay back are not necessarily people who have our best interest at heart. Brazil, we owe $258 billion. India, we owe $216 billion. And the list goes on the debt that is owed to foreign countries,” Congressman Mooney said.
US debt has been growing at a high rate this century. In 2000, US debt was just $5.2 trillion. It doubled during the Obama years 2008-2016, as the government had to run multiple stimulus programs and pump money into the system in the aftermath of the 2008 Global Financial Crisis.