The U.S. national debt is the total amount of money that the federal government owes to creditors. It is the result of years of budget deficits, where government spending exceeds revenue. As of 2025, the national debt exceeds $34 trillion, raising concerns about long-term economic stability. The debt is divided into two main parts: debt held by the public and intragovernmental holdings. It grows due to factors like increased military spending, healthcare costs, tax cuts, and interest on existing debt. While some economists argue that borrowing can support growth during downturns, others warn that high debt levels may lead to inflation, higher interest rates, and reduced investor confidence. Managing the debt responsibly is essential for maintaining the country’s financial health and future prosperity.
