#USNationalDebt The US national debt was formed as a result of federal government borrowings to finance its expenditures when revenues (primarily taxes) are insufficient. Below is a brief description of how and why the debt arose and grew:
📌 Historical Origins
Beginning — War of Independence (1775–1783)
The US began borrowing funds to finance the war with Great Britain. By 1790, the national debt was about 75 million dollars.
19th Century — Wars and Infrastructure
The debt grew during the Civil War (1861–1865) as funding for the army and armaments was required. It then partially decreased during peacetime periods.
20th Century — The Great Depression and Wars
In the 1930s, the US began to actively borrow to finance anti-crisis programs (New Deal).
World War II (1939–1945) caused a huge increase in debt: its level exceeded 100% of GDP.
💵 Main Reasons for Debt Increase
Budget deficit — a constant excess of expenditures over revenues.
Military expenses — wars, defense, interventions.
Social programs — Medicare, Medicaid, pension payments.
Tax cuts — especially in the 1980s (Reagan), 2000s (Bush), 2017 (Trump).
Financial crises — 2008 and 2020 (COVID-19): the government increased spending to rescue the economy.
📊 Who Holds the US Debt
About 70% — domestic holders: Fed, pension funds, banks, investors.
About 30% — foreign holders, including:
Japan
China
Great Britain
Other countries and international organizations
📈 Current Situation (as of 2025)
The national debt exceeds 34 trillion dollars
This is more than 120% of the US GDP
The US continues to service the debt by paying interest, but its growth raises concerns about the future sustainability of the financial system.