#USNationalDebt

The U.S. National Debt refers to the total amount of money the federal government owes to creditors. It is primarily divided into two parts:

Debt held by the public – borrowed from investors, foreign governments, and institutions.

Intragovernmental holdings – money the government owes itself (like Social Security Trust Funds).

🔍 Key Highlights:

As of 2025, the U.S. national debt is over $34 trillion, reaching historic highs.

The debt grows due to budget deficits, where government spending exceeds tax revenue.

Major contributors: defense, healthcare (Medicare/Medicaid), Social Security, and interest payments.

Interest on the debt is becoming a larger burden, especially with rising interest rates.

💬 Ongoing Debate:

Fiscal conservatives call for spending cuts and entitlement reforms.

Others argue debt is sustainable if economic growth outpaces interest costs.

Rating agencies and economists warn of potential long-term risks, such as inflation, higher taxes, or reduced investor confidence.