#USNationalDebt

The U.S. national debt is the total amount of money the federal government owes to creditors. As of 2025, it exceeds $34 trillion. The debt is divided into two parts: public debt, owed to external investors like individuals, foreign governments, and institutions; and intragovernmental holdings, owed to government programs like Social Security. Debt accumulates when government spending exceeds revenue, leading to annual budget deficits. The main causes include military expenses, social programs (like Medicare), tax cuts, and interest payments. A rising debt can lead to higher interest rates, reduced government flexibility, and concerns about long-term economic stability. However, because the U.S. borrows in its own currency, it’s less vulnerable to default. Managing the debt involves balancing spending, increasing revenues, and ensuring economic growth. The debt ceiling, a legal limit on how much the government can borrow, is often a political flashpoint, influencing financial markets and public policy debates.