The US has added well over half a trillion dollars to its national debt since the start of 2024 as the CEO of the world’s largest bank issues a warning on the state of America’s balance sheet.
According to new data from the Treasury, as of May 14th, the US national debt grew by $582.381 billion year-to-date, with interest on that debt surpassing spending on both national defense and Medicare.
The nation’s total outstanding debt now stands at $34.5 trillion.
In a new interview with Sky News, JPMorgan Chase CEO Jamie Dimon says that much of the growth in the American economy in recent years is largely driven by borrowing.
But Dimon says the debt-to-GDP ratio, if unchecked, will become a major problem that’s much harder to deal with.
“America has spent a lot of money. And during Covid and after Covid our deficit is 6% now. That’s a lot, but obviously that drives growth. Any country can borrow money and drive some growth but it may not always lead to good growth so I think America should be quite aware that we have to focus on our fiscal deficit issues a little bit more, and that is important for the world…
I think it’s why we have higher inflation and sticky inflation, and I think if you want to do a great job in your country, and you have a 6% deficit and a 100% debt to GDP [ratio], this can go on for a while. But the sooner we focus on it, the better. So I’m hoping that the government really focuses on how can we reduce that deficit and still have good growth…
At one point it will cause a problem, and why should you wait? Because the problem will be caused by the market and then you’ll be forced to deal with it and probably in a far more uncomfortable way than if you had dealt with it to start.”
According to the Treasury Department, the US government has spent $855 billion more than it has collected in the 2024 fiscal year.
In 2023, the government’s total deficit spending reached $1.7 trillion.
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