#USNationalDebt

U.S. National Debt – A 100-Word Overview

The U.S. national debt refers to the total amount of money the federal government owes to creditors. As of 2025, it exceeds $34 trillion, driven by decades of budget deficits where spending surpasses revenue. The debt is funded by issuing Treasury securities, bought by individuals, institutions, and foreign governments. Rising debt can lead to higher interest payments, reduced fiscal flexibility, and potential economic risks if investor confidence declines. However, some economists argue that with low interest rates and a strong economy, the debt is manageable. Still, long-term sustainability remains a critical concern for policymakers and future generations.