#USNationalDebt The growing debt of the United States is the result of a simple mathematical operation: each year there is a mismatch between spending and income.

When the federal government spends more than it earns, it has to borrow to cover that annual deficit. And each year, the deficit adds to our growing national debt.

Historically, the largest deficits were caused by increased spending around national emergencies, such as major wars or the Great Depression.

Today, deficits are primarily due to predictable structural factors: the aging of the baby boomer generation, rising healthcare costs, higher interest rates, and a tax system that does not generate enough revenue to cover the government's promises to its citizens. Looking to the future, it will be crucial for American leaders to address the rising debt and its structural factors.

THE MORE WE BORROW, THE MORE WE PAY IN INTEREST ON THAT DEBT

The United States is experiencing a significant demographic shift. Our society is aging as the large baby boomer generation begins to retire: 10,000 people will turn 65 every day until 2030. Additionally, people are expected to live longer, on average. This is great news, but it means we need to prepare for the financial needs of a longer retirement.

These enormous demographic trends are placing increasing pressure on the federal budget, particularly on vital programs that benefit older Americans, such as Social Security and Medicare.

Rising healthcare costs

In many ways, healthcare is the most important issue for the fiscal and economic future of our nation. It represents nearly one-fifth of our entire economy and is one of the fastest-growing budget items.

Interest accumulates quickly. As debt grows, so do the interest.