U.S. National Debt: Causes and Challenges

The U.S. national debt is one of the largest economic challenges facing the United States, surpassing $34 trillion in 2024. This massive increase is due to multiple factors, including significant military spending, social welfare programs such as Social Security and healthcare (Medicare and Medicaid), and borrowing to finance economic incentives, especially during crises like the COVID-19 pandemic.

Although the United States has a strong economy and the ability to borrow at relatively low interest rates due to investor confidence in the dollar, the continued increase in debt may lead to inflationary risks, rising interest rates, and pressure on the federal budget. Additionally, political disagreements between Democrats and Republicans over raising the debt ceiling add to financial instability.

In the future, the government may have to reduce spending or increase taxes to address this debt, but that could impact economic growth. Without sustainable solutions, this financial burden could become a long-term threat to the U.S. economy and the interconnected global economy.

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