#USNationalDebt The US national debt is approximately $36.2 trillion as of May 2025, which translates to around $106,000 per person in the US. This debt has been accumulating over time due to the government's spending exceeding its revenue, resulting in budget deficits. The national debt is composed of:
- *Debt Held by the Public*: $29 trillion
- *Intragovernmental Debt*: $7.4 trillion
The debt-to-GDP ratio, which indicates a country's ability to pay down its debt, is currently around 121%. This ratio has surpassed 100% in recent years, primarily due to increased spending during the COVID-19 pandemic.
*Key Factors Contributing to the Growing National Debt:*
- *Demographics*: The aging baby-boom generation and increased life expectancy put pressure on the federal budget, particularly on programs like Social Security and Medicare.
- *Rising Healthcare Costs*: The US healthcare system is the most expensive in the world, and improving its performance is crucial for stabilizing the fiscal outlook.
- *Inadequate Revenues*: The US tax system doesn't generate enough revenue to cover the government's spending, leading to higher annual deficits and mounting debt.
*Consequences of the Growing National Debt:*
- *Increased Interest Payments*: The government spends over $2.6 billion daily on interest, which is the fastest-growing part of the federal budget.
- *Reduced Resources for Investment*: Every dollar spent on interest payments means less resources available for investing in a stronger, more resilient future ¹.