The U.S. national debt is the total amount of money that the federal government owes to creditors, both domestic and international. It accumulates when the government spends more than it collects in revenue, primarily through taxes. To cover this gap, the U.S. Treasury issues debt in the form of Treasury bonds, bills, and notes. The debt is broadly divided into two categories: public debt (owed to outside investors and institutions) and intragovernmental debt (owed to various government trust funds like Social Security).
As of recent years, the U.S. national debt has surpassed $34 trillion, driven by factors such as tax cuts, wars, economic stimulus measures, and rising entitlement spending. Interest payments on the debt are becoming a significant part of the federal budget, limiting funds for other priorities.
Economists debate the long-term impact of such high debt. Some argue that it can crowd out private investment, raise interest rates, and burden future generations. Others believe that as long as the economy grows and inflation is controlled, the debt is manageable. Regardless, managing the national debt is a central issue in U.S. fiscal policy, requiring careful decisions about spending, taxation, and economic growth strategies.
