Here is a comprehensive analysis of the US National Debt updated until **June 2025**, focusing on the causes, challenges, and economic impacts:
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### 1. **Key Figures (Currently):**
- **Total Federal Debt**: **~$36.5 trillion** (≈ 124% of GDP).
- **Debt per Individual**: ≈ **$110,000 per American citizen**.
- **Annual Debt Service**: ≈ **$890 billion** (greater than combined defense + education budgets).
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### 2. **Structural Causes of Increase:**
- **Chronic Deficit**:
- **2024 Budget Deficit**: $1.7 trillion (6.2% of GDP).
- Main reasons: Rising spending on **healthcare (Medicare/Medicaid)**, **social security**, and **interest on the debt itself**.
- **Tax Policies**:
- Tax cuts (like the 2017 law) reduced revenues despite economic growth.
- **Emergency Shocks**:
- COVID-19 pandemic (stimulus packages ≈ $5 trillion).
- Inflation-fighting policies (2022-2024).
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### 3. **Serious Economic Impacts:**
- **Rising Borrowing Costs**:
- Average yield on 10-year Treasury bonds: **≈4.3%** (compared to 1.5% in 2020).
- The government spends **17% of its tax revenues** just on debt service!
- **Weakened ability to respond to crises**:
- Limited space for new stimulus programs in case of recession.
- **Pressure on the dollar**:
- Risks of depreciation in global reserves.