During shutdown, the gross national debt of the US government exceeded $38 trillion on Wednesday, a record number that underscores the accelerating accumulation of debt on America’s balance sheet.

It’s about the faster accumulation of debt a trillion dollars outside of the Covid-19 pandemic.

Kent Smethers, who served in President George W. Bush’s Treasury Department, told The Associated Press that a growing debt over time eventually leads to higher inflation, eroding Americans’ purchasing power.

The Government Accountability Office outlines some of the effects of rising public debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses that have less money available for investment, and more expensive goods and services.

“I think a lot of people want to know that their kids and grandkids are going to be in a good, decent situation in the future — that they’re going to be able to afford a house,” Smetters said. “This additional inflation is compounded” and erodes consumer purchasing power, he said, making it less likely for future generations to achieve their homeownership goals.

The Trump administration has argued that its policies help slow government spending and shrink the country’s massive deficit. A new analysis by Treasury officials says that from April to September, the cumulative deficit was $468 billion. In a post on X Finance Minister Scott Bessett said this was the lowest reading since 2019.

“During his first eight months in office, President Trump has reduced the deficit by $350 billion compared to the same period in 2024, cutting spending and increasing revenue,” White House spokesman Khush Desai said, adding that the administration would pursue strong economic growth, lower inflation, tariff revenue, lower borrowing costs and cuts to waste, fraud and abuse.

The Joint Economic Commission estimates that the total national debt has grown by $69,713.82 per second over the past year.

Michael Peterson, president and CEO of the Peter G. Peterson Foundation, said in a statement that “the fact that the debt has reached $38 trillion during the government shutdown is the latest troubling sign that lawmakers are not fulfilling their basic fiscal duties.”

“With the increase in debt comes higher interest costs, which are now the fastest growing part of the budget,” Peterson added. “We’ve spent $4 trillion on interest over the last decade, but we’ll spend $14 trillion over the next ten years. Interest costs are displacing important public and private investments in our future, hurting the economy of every American.”

US debt reached $34 trillion in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024.