The U.S. national debt has reached about $34 trillion. This amount is so enormous that it’s like someone earning $200 a month spending $200 million on a credit card. The annual interest payments alone exceed South Korea’s entire national budget.

Recently, the interest rate on 30-year U.S. government bonds rose to 5%, making borrowing even more expensive. Despite this, a new bill called the “One Big, Beautiful Bill,” introduced by former President Trump, has passed the House and is awaiting Senate approval. The bill aims to cut taxes by $4 trillion over 10 years, which would likely increase the national debt even further. The plan includes eliminating taxes on tips and overtime pay, as well as reducing student loan burdens. Supporters argue that tax cuts will boost the economy and ultimately increase government revenue. To offset the cost, the U.S. government has proposed reducing federal spending by $1.5 trillion.

This approach contradicts typical debt reduction strategies, since lowering taxes reduces government revenue. At the same time, the value of the U.S. dollar is falling—an unusual trend when interest rates are rising. This unexpected combination has made many experts and investors uneasy.

Right now, America’s debt is equal to its total economic output (100% of GDP). Experts warn that if this number climbs to 175% or more, the country could face a crisis. According to a professor at Wharton, once it hits 200%, it may be impossible to raise taxes to fix the problem.

The best solution, experts say, is for the U.S. to grow its economy through innovation and increased productivity. In the meantime, the government is considering bold strategies such as raising tariffs, keeping interest rates low, and even issuing 100-year bonds—despite some of these policies appearing contradictory. With so much uncertainty, the world is watching closely.

As America’s debt crisis could have significant consequences for the global economy, the world must be prepared for unexpected developments.

김주하 강남포스트 학생기자  webmaster@ignnews.kr

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