#USNationalDebt The US national debt is approximately $36.56 trillion, with debt held by the public at $29 trillion and intragovernmental holdings at $7.4 trillion. This debt represents the total amount of outstanding borrowing by the US Federal Government accumulated over time.
*Key Components:*
- *Debt Held by the Public*: $29 trillion, approximately 77% of GDP in 2017
- *Intragovernmental Holdings*: $7.4 trillion, representing debt owed to government trust funds like Social Security
- *Marketable Securities*: Treasury notes, bills, and bonds held by investors globally
- *Non-Marketable Securities*: Government account series owed to trust funds like Social Security
*Factors Contributing to the Growing National Debt:*
- *Government Spending*: Increased funding for programs and services, such as during the COVID-19 pandemic
- *Tax Cuts*: Reduced tax revenue, like the Tax Cuts and Jobs Act of 2017
- *Economic Downturns*: Recessions and wars, which decrease tax revenue and increase spending
- *Aging Demographics*: Rising healthcare costs and entitlement programs like Medicare and Social Security
*Consequences:*
- *Interest Expenses*: Annualized cost of servicing the debt was $726 billion in July 2023, accounting for 14% of total federal spending
- *Debt-to-GDP Ratio*: Projected to rise from 99% of GDP in 2024 to 116% in 2034, potentially leading to fiscal sustainability concerns.