#USNationalDebt The **U.S. national debt** is the total amount of money that the federal government owes to creditors, including individuals, businesses, foreign governments, and other entities. It consists of **public debt** (owed to investors) and **intragovernmental debt** (owed to other government accounts, like Social Security).
**Current U.S. National Debt (As of June 2024)**
- **Total Debt:** ~$34.8 trillion
- **Debt Held by the Public:** ~$27.4 trillion
- **Intragovernmental Debt:** ~$7.4 trillion
**Key Facts:**
1. **Debt-to-GDP Ratio:** ~123% (Debt is larger than the U.S. economy's annual output).
2. **Major Contributors:**
- **Deficit Spending** (government spends more than it collects in taxes).
- **Tax Cuts** (e.g., Trump tax cuts in 2017, Bush tax cuts in 2001 & 2003).
- **Economic Crises** (COVID-19 relief, 2008 financial crisis, wars).
3. **Recent Increases:**
- Added **$1 trillion** about every 3 months in early 2024.
- Surged during COVID-19 (over $7 trillion added since 2020).
**Who Owns the Debt?**
- **Foreign Governments (~30%):** Japan (~$1.1T), China (~$770B), UK, Luxembourg, others.
- **U.S. Investors & Institutions:** Federal Reserve, mutual funds, pensions, banks.
- **Social Security & Other Trust Funds.**
**Debt Ceiling**
- The U.S. has a legal **debt limit** set by Congress.
- In 2023, Congress suspended the limit until **January 2025**, avoiding default.
**Concerns & Debates**
- **Sustainability:** Rising interest payments could strain the budget.
- **Political Battles:** Republicans push for spending cuts; Democrats favor tax hikes.
- **Economic Impact:** High debt could lead to inflation, higher interest rates, or slower growth.
Would you like historical trends, projections, or comparisons with other countries?