#USNationalDebt The U.S. national debt is the total amount of money that the federal government owes to creditors — both domestic and foreign — due to borrowing to fund budget deficits over time.
📊 Current Overview (as of mid-2025):
Total U.S. National Debt: Over $35 trillion
Debt-to-GDP Ratio: Around 125%+
Primary Holders:
Public debt: ~75% — held by investors, foreign governments, the Federal Reserve
Intragovernmental debt: ~25% — owed to Social Security, Medicare trust funds, etc.
🔍 Types of U.S. Debt:
Debt Held by the Public: Bonds bought by individuals, businesses, foreign countries.
Intragovernmental Holdings: Debt owed by one part of the government to another.
📈 Why It's Rising:
Large budget deficits
High interest payments
Pandemic-era spending (2020–2022)
Tax cuts with insufficient offsets
Rising entitlement costs (Social Security, Medicare)
⚠️ Risks of High Debt:
Higher interest rates and servicing costs
Lower fiscal flexibility in emergencies
Potential downgrade of U.S. credit rating
Crowding out of private investment
✅ Mitigation Options:
Raising taxes
Cutting **sp