#USNationalDebt

The U.S. National Debt represents the total amount of money the federal government owes to creditors, both domestic and foreign. As of 2025, it has surpassed $35 trillion, driven by consistent budget deficits, large-scale stimulus packages, military spending, and entitlement programs like Social Security and Medicare. The national debt is divided into two parts: public debt, held by investors and foreign governments, and intragovernmental holdings, owed to various trust funds. A rising debt level can lead to higher interest payments, reduced fiscal flexibility, and potential investor concern about the U.S.’s long-term solvency. While some economists argue that debt is manageable if the economy grows faster than borrowing costs, others warn that unchecked borrowing could weaken the dollar, raise inflation, and crowd out private investment. Debates around the debt ceiling, tax reform, and entitlement spending continue to dominate U.S. fiscal policy discussions. Managing the national debt responsibly is critical for ensuring long-term economic stability and intergenerational equity.