#USNationalDebt The US national debt is approximately $36.56 trillion, with debt held by the public standing at around $29 trillion and intragovernmental holdings at about $7.4 trillion. To put this into perspective, the debt per person in America is roughly $106,109. The national debt has been increasing over the years, with notable recent spikes due to the COVID-19 pandemic and rising healthcare costs ¹ ².

*Key Factors Contributing to the Growing National Debt:*

- *Demographics*: The aging baby-boom generation's retirement and increased life expectancy put pressure on federal programs like Social Security and Medicare.

- *Rising Healthcare Costs*: Healthcare expenses are a significant portion of the federal budget and are expected to continue growing.

- *High Interest Rates*: As interest rates rise, the cost of maintaining the national debt increases, adding to the overall debt burden ².

*Impact of the National Debt:*

- *Interest Payments*: The annualized cost of servicing the debt was $726 billion in July 2023, accounting for 14% of total federal spending.

- *Debt-to-GDP Ratio*: The US debt-to-GDP ratio has surpassed 100%, indicating a potential risk to the country's fiscal stability ¹.

*Projections and Concerns:*

- The Congressional Budget Office (CBO) projects that federal debt held by the public will rise from 99% of GDP in 2024 to 116% in 2034.

- Rising debt and interest costs may lead to increased borrowing costs for private businesses and households ¹.