The current US national debt stands at approximately $36.56 trillion, with debt held by the public at $29 trillion and intragovernmental holdings at $7.4 trillion. This debt is projected to continue growing, with the Congressional Budget Office (CBO) estimating that federal debt held by the public will rise to 116% of GDP by 2034 and potentially reach 172% of GDP by 2054.
*Key Components of US National Debt:*
- *Debt Held by the Public*: $29 trillion, approximately 77% of GDP in 2017
- *Intragovernmental Debt*: $7.4 trillion, representing cumulative surpluses of various government programs invested in Treasury securities
- *Foreign Holdings*: $7 trillion, with Japan and China being the top foreign holders, owning $1.2 trillion and $1.1 trillion respectively
*Factors Contributing to Growing National Debt:*
- *Government Spending and Tax Policies*: Tax cuts and increased spending contribute to higher deficits and debt
- *Aging Demographics and Healthcare Costs*: Rising healthcare costs and aging demographics pose concerns about the long-term sustainability of fiscal policies
- *Interest Costs*: The annualized cost of servicing the debt was $726 billion in July 2023, accounting for 14% of total federal spending
*Projections and Concerns:*
- The CBO projects the national debt to continue growing, driven by increasing interest costs and mandatory spending
- The debt-to-GDP ratio is expected to rise, potentially reaching historic highs
- The growing national debt poses concerns about the long-term sustainability of US fiscal policies ¹
