#USNationalDebt

The **U.S. National Debt** refers to the total amount of money that the United States federal government owes to creditors. It includes **both public debt** (held by investors, foreign governments, and the Federal Reserve) and **intragovernmental holdings** (owed to trust funds like Social Security).

As of 2025, the U.S. national debt exceeds **\$34 trillion**, driven by years of **budget deficits**, where government spending has outpaced revenue. Major contributors include military expenditures, entitlement programs (like Medicare and Social Security), and emergency relief spending during crises like the 2008 financial crash and the COVID-19 pandemic.

### Why It Matters:

* **Interest payments** on the debt consume a growing share of the federal budget.

* **High debt** can lead to inflationary pressures and reduced investor confidence.

* **Future generations** may face economic constraints due to rising debt servicing costs.

### The Debate:

Some economists argue that as long as interest rates remain low, the U.S. can manage a high debt-to-GDP ratio. Others warn that unchecked borrowing could lead to a fiscal crisis, crowd out private investment, and weaken the U.S. dollar's global standing.