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.
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