#USNationalDebt

The **U.S. national debt** is the total amount of money owed by the federal government to creditors, including individuals, businesses, foreign governments, and other entities. It consists of **public debt** (owed to external investors) and **intragovernmental debt** (owed to other government agencies, like Social Security).

### **Current U.S. National Debt (June 2024)**

- **Total Debt:** ~$34.8 trillion ([U.S. Treasury](https://www.treasurydirect.gov/))

- **Debt-to-GDP Ratio:** ~123% (GDP is ~$28.3 trillion)

- **Per Citizen Debt:** ~$103,000

- **Per Taxpayer Debt:** ~$265,000

### **Key Causes of Rising Debt**

1. **Deficit Spending** – The government spends more than it collects in revenue (taxes).

2. **Tax Cuts & Spending Increases** – Policies like the 2017 Tax Cuts and Jobs Act and stimulus packages (COVID-19 relief, infrastructure bills) have expanded deficits.

3. **Rising Interest Costs** – Higher interest rates increase debt servicing costs (currently ~$1 trillion/year).

4. **Entitlement Programs** – Social Security, Medicare, and Medicaid make up a large portion of spending.

### **Debt Ceiling & Political Battles**

The U.S. has a **statutory debt limit**, requiring Congress to periodically raise it to avoid default. Recent debates (2023, 2021, 2011) have led to high-stakes negotiations and threats of government shutdowns.

### **Economic Implications**

- **Pros:** Debt fuels growth during crises (e.g., COVID-19 stimulus).

- **Cons:** Long-term risks include inflation, higher taxes, reduced investment, and potential financial instability.

Would you like a deeper breakdown of recent trends or policy debates?