#USNationalDebt #USNationalDebt – A Short Note
The U.S. National Debt refers to the total amount of money that the federal government owes to creditors, both domestic and foreign. It is the result of the government borrowing funds to cover budget deficits—when spending exceeds revenue.
As of 2025, the U.S. national debt has surpassed $34 trillion, a record high. The debt is divided into two main parts:
1. Public Debt – Money borrowed from investors, foreign governments, and institutions.
2. Intragovernmental Holdings – Debt owed by the government to itself, such as Social Security trust funds.
Causes of Rising Debt:
Persistent budget deficits
Military and defense spending
Social programs (e.g., Medicare, Medicaid, Social Security)
Interest payments on existing debt
Emergency spending (e.g., COVID-19 relief)
Concerns:
Higher debt can lead to higher interest rates
May reduce investor confidence
Can limit future government spending flexibility
Management Tools:
Issuing Treasury securities
Adjusting tax policies
Enacting spending reforms
Despite concerns,