Published on November 3, 2024 at 10:03 p.m. / Modified on November 3, 2024 at 10:04 p.m.
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Whatever the outcome of the November 5 election, the world's largest economy will continue to go into debt
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The American debt amounts to more than 35,000 billion dollars: a colossal but bearable figure
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If the United States will not default on its debt, it will still have potentially worrying consequences
Neither candidate for the American presidency wants to reduce the American deficit or the country's debt. Whatever the outcome of the November 5 vote, the world's largest economy will obviously continue to go into debt. The figures are reaching heights that frighten observers: in addition to a deficit of around 6% this year, the American debt rose from 55% of GDP in 2000 to 123% last year. And could represent 192% of annual production in thirty years if current policies continue, according to the US Congressional Budget Office. Is this trend sustainable? How long will the American government be able to finance itself? What are the risks for the US economy and the rest of the world?
More than 35,000 billion dollars: this is the amount of American debt at the time of writing this article. This is more than 40 times Swiss GDP and this amount increases by around $100,000 every three seconds, according to sites like Usdebtclock.com, which track its evolution live. But focusing on the gross amount is reductive and prevents us from analyzing the mechanics of the debt, says Samy Chaar, of Lombard Odier: “We must first of all observe the use made of this debt. The United States has clearly decided to invest by going into debt, notably through programs such as the Inflation Reduction Act or Chips for America. Without debt, no investment.
