The federal government's total debt load passed $39 trillion on Tuesday, a new high, after a jump of $1 trillion in less than six months, according to Treasury Department data. And debt held by the public, a key measure for economists, has climbed above $31 trillion for the first time, Fortune reports. It's "an embarrassing milestone that both parties have helped build over decades," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "At the current growth rate," said Michael Peterson of the nonprofit Peter G. Peterson Foundation, per the AP, "we will hit a staggering $40 trillion in national debt before this fall's elections."
The effects on Americans include higher borrowing costs for home mortgages and cars, lower wages as businesses have less money available to invest, and more expensive goods and services, the Government Accountability Office points out. The unprecedented figure also highlights the cost of certain Trump administration priorities, per the AP, such as tax cuts, higher military spending, and bigger budgets for immigration law enforcement. Annual budget shortfalls are nearing $2 trillion, and deficits as a share of the economy are roughly double the level of 3% of GDP that many experts have cited as sustainable.