The national debt of the United States is the total amount of money that the U.S. federal government owes to Treasury bondholders. The total U.S. federal debt was approximately $36.56 trillion in March 2025.

*Components of the National Debt:*

- *Public Debt*: Represents the amount owed by the government to bondholders, including individuals, corporations, and foreign financial institutions.

- *Intragovernmental Debt*: Represents the amount owed by the government to its internal accounts, such as the Social Security Trust Fund.

*Causes of National Debt Growth:*

- *Government Spending*: Increased government spending can lead to an increase in national debt.

- *Taxes*: Insufficient taxes can lead to an increase in national debt.

- *Economic Crises*: Economic crises, such as the COVID-19 pandemic, can lead to an increase in national debt due to increased government spending and reduced revenues.

*Effects of National Debt:*

- *Increased Interest Costs*: Rising national debt can lead to increased interest costs, which may affect government spending and the economy.

- *Impact on Credit Rating*: Rising national debt can lead to a downgrade of the United States' credit rating, potentially increasing borrowing costs.

- *Impact on the Economy*: Rising national debt can have negative effects on the economy, such as inflation and reduced investment.

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