#USNationalDebt #USNationalDebt – A Short Note

The U.S. National Debt refers to the total amount of money that the federal government owes to creditors, both domestic and foreign. It is the result of the government borrowing funds to cover budget deficits—when spending exceeds revenue.

As of 2025, the U.S. national debt has surpassed $34 trillion, a record high. The debt is divided into two main parts:

1. Public Debt – Money borrowed from investors, foreign governments, and institutions.

2. Intragovernmental Holdings – Debt owed by the government to itself, such as Social Security trust funds.

Causes of Rising Debt:

Persistent budget deficits

Military and defense spending

Social programs (e.g., Medicare, Medicaid, Social Security)

Interest payments on existing debt

Emergency spending (e.g., COVID-19 relief)

Concerns:

Higher debt can lead to higher interest rates

May reduce investor confidence

Can limit future government spending flexibility

Management Tools:

Issuing Treasury securities

Adjusting tax policies

Enacting spending reforms

Despite concerns,