#USNationalDebt The U.S. national debt refers to the total amount of money that the United States federal government owes to creditors. It is the result of the government borrowing money to cover budget deficits — when its expenditures exceed its revenues.

🔢 As of June 2025:

The U.S. national debt is over $34.8 trillion, and it's increasing rapidly due to:

High government spending (on defense, Medicare, Social Security, infrastructure, etc.)

Tax cuts and economic stimulus measures (especially during COVID-19)

Rising interest rates, which make debt servicing more expensive

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📊 Breakdown of the U.S. National Debt:

There are two main components:

1. Public Debt (~75%)

Held by individuals, corporations, foreign governments, and the Federal Reserve.

China and Japan are two of the largest foreign holders.

2. Intragovernmental Holdings (~25%)

Money the government owes itself, like the Social Security Trust Fund.

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💡 Why It Matters:

Interest Payments: A growing portion of the federal budget goes to pay interest on the debt.

Economic Impact: High debt can crowd out private investment and hurt long-term economic growth.

Global Trust: Confidence in U.S. debt is vital for global financial stability.

Future Generations: Increasing debt may result in higher taxes or reduced government services down the line.

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📈 Key Historical Points:

2008: ~$10 trillion (Global Financial Crisis era)

2020: ~$23 trillion (COVID-19 pandemic begins)

2023: ~$31 trillion

2025: ~$34.8+ trillion and climbing.

🔮 What’s Next?

Economists debate how sustainable the current trajectory is. Some argue the U.S. can handle higher debt because it controls the world's reserve currency (USD), while others warn of future inflation, higher taxes, or austerity measures.