#USNationalDebt

\#USNationalDebt

The U.S. National Debt refers to the total amount of money the federal government owes to creditors. It is the result of borrowing to cover budget deficits, where government spending exceeds revenue. The debt is divided into two parts: **public debt**, held by individuals, institutions, and foreign governments, and **intragovernmental holdings**, owed to trust funds like Social Security. As of 2025, the U.S. national debt exceeds **\$34 trillion**, raising concerns about inflation, interest rates, and long-term economic stability. Economists debate whether high debt levels are sustainable, but managing it effectively remains a key challenge for policymakers and future generations.