On October 22, the U.S. Department of Treasury revealed that the national debt has surpassed $38 trillion for the first time.

This image shows the U.S. Department of Treasury building in Washington D.C., taken on July 29, 2024.

As the U.S. government continues to face shutdowns, the national debt keeps rising, causing pay disruptions for hundreds of thousands of federal employees and significantly disrupting economic activity.

CBS reported on October 22 that government shutdowns do indeed elevate national debt. Such incidents delay economic activities and fiscal decisions, while the pause and restart of federal programs incurs additional costs. The U.S. Office of Management and Budget estimated that the government shutdown in 2013 resulted in losses of up to $2 billion.

Michael Peterson, CEO of the Peter G. Peterson Foundation, expressed concern, stating, “The national debt reaching $38 trillion during a government shutdown is the latest indication of Congress's failure to fulfill basic fiscal responsibilities.” Just two months ago, the debt had recently exceeded $37 trillion.

The foundation forecasts that interest payments on the national debt will surge to $14 trillion over the next decade, compared to $4 trillion in the past decade. This increase will significantly crowd out public and private spending in critical economic sectors.

In May of this year, credit rating agency Moody's downgraded the U.S. sovereign credit rating from the highest level of Aaa to Aa1, reflecting investors' concerns over the expanding U.S. government debt.