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US President Donald Trump has expressed confidence that rapid economic growth can overcome America’s mounting debt burden after the federal government’s outstanding debt surpassed US$40 trillion (about RM168 trillion) for the first time.
Trump said the debt problem had persisted for decades but argued that the pace of economic expansion under his administration would provide a solution.
“It is true, and it has been a problem for 35 years. But what we have now, something we have never enjoyed before, and we experienced a lot of it in my first term.
“As you know, is very rapid growth. The way you handle debt is through growth, and we are having tremendous growth. We have never seen the kind of growth we are having now. This growth will solve it very easily,” Reuters reported him saying.
Trump made the remarks on Friday after arriving at Myrtle Beach International Airport in South Carolina aboard Air Force One to attend a campaign rally for US Senator Lindsey Graham.
The comments came as the US Treasury Department confirmed this week that federal government debt had crossed the US$40 trillion mark, setting a new record and intensifying concerns over the country’s long-term fiscal position.
The surge has raised fresh warnings about the risk of a fiscal crisis, particularly as spending on social safety-net programmes and debt interest payments rises significantly faster than government revenue.
Government revenue has also come under pressure from tax cuts, adding to concerns over the sustainability of US public finances.
The federal debt is now more than double the roughly US$19.95 trillion recorded when Trump first took office in January 2017.
About one-third of the increase occurred during the two years when the US government dramatically expanded borrowing to finance measures aimed at addressing the Covid-19 pandemic under Trump and former president Joe Biden.
The remainder has been attributed to fiscal policies under both administrations, as well as a longstanding imbalance between government revenue and spending.
The debt has continued to rise as the US faces growing demands to finance social programmes, service its debt and meet other spending commitments.
The developments have renewed questions over Washington’s ability to contain its debt over the long term, particularly if economic growth fails to keep pace with rising borrowing costs and government expenditure. – August 22, 2026
