{
  "id": 3108959,
  "title": "U.S. racks up 40 trillion dollars in debt, raising concerns over economic crisis",
  "url": "https://urgent.news/2026/08/24/u-s-racks-up-40-trillion-dollars-in-debt-raising-concerns-over",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-24T21:00:00.000Z",
  "source": {
    "name": "Hellenic Shipping News",
    "slug": "hellenic-shipping-news",
    "url": "https://www.hellenicshippingnews.com/u-s-racks-up-40-trillion-dollars-in-debt-raising-concerns-over-economic-crisis/"
  },
  "original_language": "en",
  "account": "The United States has amassed 40 trillion dollars in debt, sparking worries that this growing burden could spark a major economic crisis if not tackled. The debt has more than doubled over the past decade, skyrocketing from 19.4 trillion dollars after big COVID spending and persistent deficits. In the latest recorded month, July, the Treasury Department disclosed a deficit of 432.3 billion dollars, the highest since March 2021. Experts warn that unchecked debt could indeed lead to a significant debt crisis. Currently, U.S. federal debt equals approximately 123 percent of the country's GDP. However, according to research from the University of Pennsylvania's Wharton Business School, the debt-to-GDP ratio the U.S. can manage is around 210 percent of GDP. When the ratio exceeds this point, there is no feasible way to finance interest payments through broad-based income taxes at the rates demanded by financial markets, the study asserts. A national debt crisis would be akin to the Great Recession of 2008-09 or the Great Depression of the 1930s, according to Clay Ramsay, a researcher at the Center for International and Security Studies at the University of Maryland. The latter economic downturn resulted in millions losing jobs and financial stability, with the stock market taking six years to recover. Experts suggest a debt crisis could inflict damage that would take years to mend. Such an event could also have profound political consequences, intensifying debates over income and wealth taxes. A Wharton Business School model predicts U.S. debt could become unsustainable by 2048 if current trends persist. This projection does not account for unforeseen shocks like a crash in the AI sector that might hasten the crisis. \"In practice, debt always seems sustainable until bond investors collectively decide the government cannot make the required adjustments,\" Ramsay explained. While some argue that economic resilience and future growth may help alleviate the debt, Treasury Secretary Scott Bessent recently dismissed concerns over the 40 trillion-dollar debt, saying there’s no magic number and the U.S. could \"grow our way out of that.\" Bessent added that the administration plans to rely on global economic growth and future fiscal consolidation to address the debt burden. However, experts note that this issue has received limited attention in the lead-up to the November midterm elections. Darrell West, a senior fellow at the Brookings Institution, noted that the massive debt level has not been a campaign issue, making it difficult for people to grasp its implications for their lives.",
  "summary": "The U.S. government has racked up 40 trillion dollars in debt, raising concerns that the mounting burden could trigger a major economic crisis if left unaddressed. U.S. government debt has surged from 19.4 trillion dollars a decade ago, nearly doubling after massive COVID-era spending and years of deficits. In July, the most recent month for ...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}