#USNationalDebt

The **U.S. national debt** is the total amount of money owed by the federal government. As of **June 2024**, the debt stands at:

- **Total National Debt:** ~$34.8 trillion

- **Debt Held by the Public:** ~$27.4 trillion

- **Intragovernmental Debt (owed to federal agencies like Social Security):** ~$7.4 trillion

### **Key Facts:**

1. **Debt Growth:**

- The debt has surged due to tax cuts, stimulus spending (especially during COVID-19), wars, and rising entitlement costs.

- It passed **$30 trillion in 2022** and **$34 trillion in early 2024**.

2. **Debt-to-GDP Ratio:** ~123% (higher than post-WWII levels).

3. **Recent Increases:**

- **$1 trillion added roughly every 100 days** in early 2024.

- Projected to exceed **$50 trillion by 2034** (Congressional Budget Office).

4. **Interest Costs:**

- The U.S. spends **over $1 trillion annually** just on interest payments (due to high rates and rising debt).

### **Causes of Rising Debt:**

- **Deficit Spending** (government spends more than it collects in taxes).

- **Tax Cuts** (e.g., Trump’s 2017 tax cuts, Biden’s spending bills).

- **Economic Crises** (2008 recession, COVID-19 relief).

- **Entitlement Programs** (Social Security, Medicare costs are growing).

### **Debt Ceiling & Political Battles:**

- The U.S. has a **legal debt limit**, which Congress must raise to avoid default.

- Last major showdown was in **2023**, resolved with the **Fiscal Responsibility Act**.

### **Future Concerns:**

- Rising interest rates make debt more expensive.

- Possible risks to economic growth and inflation.

- Political debates over spending cuts vs. tax hikes.