#USNationalDebt

As of June 2025, the U.S. national debt is at record-high levels, exceeding $35.8 trillion.

🔹 What Is the U.S. National Debt?

The U.S. national debt is the total amount of money the federal government owes to creditors—both domestic and foreign. It has two major components:

1. Public Debt – Debt held by investors, individuals, and foreign governments.

2. Intragovernmental Holdings – Debt owed to other parts of the federal government (e.g., Social Security trust funds).

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🔸 Recent Highlights (2025):

In 2023, the U.S. debt surpassed $33 trillion.

It has grown by more than $2 trillion per year since 2020.

Interest payments on the debt now exceed $1 trillion per year, making it one of the largest federal expenses.

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🔹 Why Is the Debt Growing?

High federal spending (COVID-19 relief, defense, Medicare, Social Security).

Lower tax revenues due to tax cuts and economic slowdowns.

Rising interest rates, making borrowing more expensive.

Political challenges in reducing spending or increasing taxes.

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🔸 Risks of High Debt:

Higher interest costs crowd out spending on education, infrastructure, etc.

Reduced investor confidence in the U.S. economy.

Risk of downgrades in U.S. credit rating (like in 2023 by Fitch).

Greater burden on future generations.

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🔹 Is the U.S. Going Bankrupt?

Not likely in the traditional sense, because the U.S. can print its own currency (the U.S. dollar). However, continued unchecked debt growth can lead to:

Inflation pressure

Currency devaluation

Loss of global dollar dominance