#USNationalDebt The United States' national debt, also known as the public debt or government debt, is the total amount of money owed by the federal government to its creditors.

## Current National Debt:

As of June 2025, the United States' national debt is approximately:

- *Total Debt:* $34.4 trillion USD

- *Debt-to-GDP Ratio:* 137%

- *Debt Per Citizen:* $103,000 USD

## Breakdown of National Debt:

1. *Public Debt:* $24.3 trillion (71% of total debt)

- Held by individual investors, corporations, and foreign governments

2. *Intragovernmental Holdings:* $10.1 trillion (29% of total debt)

- Held by government trust funds, such as Social Security and Medicare

## Causes of National Debt:

1. *Budget Deficits:* Annual spending exceeding revenue

2. *Entitlement Programs:* Growing costs of Social Security, Medicare, and Medicaid

3. *Tax Policies:* Changes in tax rates and deductions

4. *Economic Downturns:* Recessions and other economic slowdowns

## Effects of National Debt:

1. *Interest Payments:* Increasing interest payments on debt

2. *Inflation:* Potential for inflation due to excessive money printing

3. *Reduced Credit Rating:* Risk of reduced credit rating, increasing borrowing costs

4. *Economic Instability:* Potential for economic instability and reduced growth

## Solutions:

1. *Fiscal Discipline:* Reducing budget deficits and increasing revenue

2. *Entitlement Reform:* Reforming entitlement programs to reduce costs

3. *Tax Reform:* Implementing tax reforms to increase revenue and reduce debt

4. *Economic Growth:* Promoting economic growth to increase revenue and reduce debt burden