#USNationalDebt
The US national debt refers to the total amount of money borrowed by the federal government to cover its expenses and financial obligations when it spends more than it earns in revenue. This debt accumulates over time due to budget deficits and is typically financed through the sale of government securities, such as Treasury bills, notes, and bonds.
*Key Facts About the US National Debt:*
- *Current Debt Level*: As of Q1 2025, the total public debt stands at approximately $36.214 trillion, with the debt-to-GDP ratio reflecting the country's economic health.
- *Growth Over Time*: The national debt has grown significantly over the years, with notable increases following major events like the Great Recession in 2008 and the COVID-19 pandemic in 2020.
- *Drivers of Debt*: The main drivers of the growing national debt include ¹ ²:
- *Demographics*: An aging population, particularly the baby-boom generation, puts pressure on federal programs like Social Security and Medicare.
- *Rising Healthcare Costs*: Increasing healthcare expenses contribute to the growth of the national debt.
- *Inadequate Revenues*: The tax system doesn't generate enough revenue to cover government spending, leading to higher annual deficits and mounting debt.
*Implications of the National Debt:*
- *Interest Payments*: As the debt grows, so do interest payments, which can limit funding for other government programs and hinder economic growth.
- *Fiscal Challenges*: The growing national debt poses significant fiscal challenges, including the need for policymakers to address the imbalance between spending and revenue ¹.
*Sources:*
- Federal Reserve Economic Data (FRED)
- The Peter G. Peterson Foundation
- USAFacts ³ ¹ ²
