#USNationalDebt
The current US national debt stands at approximately $36.2 trillion as of May 2025. To put this into perspective:
- *Per-person debt*: The federal debt is equivalent to around $106,000 per person in the US, based on 2024 population data.
- *Debt-to-GDP ratio*: The national debt represents about 121% of the country's Gross Domestic Product (GDP), indicating that the debt is slightly more than the total value of goods and services produced annually.
*Breaking Down the Debt*
- *Debt held by the public*: Around $29 trillion is owed to external parties, including individual investors, corporations, and foreign governments.
- *Intragovernmental debt*: Approximately $7.4 trillion is owed to government trust funds and other government accounts.
*Factors Contributing to the Growing National Debt*
- *Demographics*: The aging baby-boom generation and increased life expectancy put pressure on federal programs like Social Security and Medicare.
- *Rising healthcare costs*: Healthcare expenses are a significant portion of the federal budget and continue to grow.
- *Inadequate revenues*: The US tax system doesn't generate enough revenue to cover government spending, leading to increased borrowing.
*Impact of the National Debt*
- *Interest payments*: The government spends over $2.6 billion daily on interest payments, which is the fastest-growing part of the federal budget.
- *Reduced investment*: Rising interest payments divert resources away from essential public investments and services.