U.S. Debt Surpasses $38 Trillion, Adding Costs And Delays To Federal Programs

Benzinga

U.S. national debt topped $38 trillion for the first time, just two months after reaching $37T. The ongoing government shutdown is worsening fiscal strain as analysts warn rising interest costs could erode investor confidence.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02U.S. gross national debt surpassed $38 trillion for the first time,

00:05according to the Treasury Department data,

00:07just two months after hitting $37 trillion, according to CBS News.

00:11The milestone comes as the government shutdown disrupts the economy

00:13and leaves hundreds of thousands of federal workers without pay.

00:17Government shutdowns can increase the national debt by delaying economic activity,

00:21postponing fiscal decisions, and raising costs to restart federal programs.

00:25The office of management and budget estimated the 2013 shutdown

00:27costs $2 billion in lost worker productivity.

00:31Peterson Foundation projects U.S. interest payments will climb

00:34from $4 trillion to $14 trillion over the next decade,

00:39limiting spending across key economic sectors.

00:41Analysts say mounting debt risks are owing investor confidence,

00:44following Moody's downgrade to the U.S. credit rating in May.

00:47For all things money, visit Benzinga.com.

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