#USNationalDebt
The US national debt is approximately $36.2 trillion as of May 2025, with each citizen's share around $106,000. This debt accumulates from the federal government's spending exceeding its revenue, resulting in budget deficits. Here's a breakdown ¹:
- *Total Debt*: $36.2 trillion, comprising debt held by the public ($29 trillion) and #intragovernmental debt ($7.4 trillion)
- *Per-Person Debt*: $106,000
- *Debt-to-GDP Ratio*: 121% as of Q1 2025, indicating the country's debt is higher than its annual economic output
The growing national debt is attributed to ² ¹ ³:
- *Demographic Trends*: Aging population and increased life expectancy putting pressure on programs like Social Security and Medicare
- *Rising Healthcare Costs*: Healthcare expenses are a significant portion of the budget and are growing rapidly
- *Inadequate Revenues*: The tax system doesn't generate enough revenue to cover spending, leading to higher deficits and debt
The implications of the national debt are ² ¹:
- *Interest Payments*: The government pays interest on its debt, which can become a significant burden on the budget, with daily interest payments exceeding $2.6 billion
- *Reduced Investment*: High interest payments can limit the government's ability to invest in other important areas, such as infrastructure, education, and defense
To address the national debt, potential solutions include
- *Increasing Revenue*: Through higher taxes or improved tax collection
- *Cutting Government Spending*: Reducing programs or projects to allocate funds more efficiently
- *Promoting #Economic Growth*: Boosting GDP to lower the debt-to-GDP ratio