#USNationalDebt

The U.S. National Debt is the total amount of money the federal government owes to creditors. It grows when government spending exceeds revenue (mainly from taxes).

🧮 Current Snapshot (June 2025):

Total National Debt: Over $35.8 trillion

Debt Per U.S. Citizen: ~$106,000+

Debt Per U.S. Taxpayer: ~$275,000+

Debt-to-GDP Ratio: Roughly 123%

Source: U.S. Treasury and Debt Clock

🧱 Two Main Components:

Debt Held by the Public (~78%)

Investors, foreign governments, banks, mutual funds

Includes Treasury bills, bonds, and notes

Intragovernmental Holdings (~22%)

Money the government owes itself (e.g., to Social Security and Medicare trust funds)

📈 Why the Debt Keeps Growing:

Annual Budget Deficits: The U.S. regularly spends more than it collects.

Interest Payments: With rising interest rates, the cost of servicing the debt is skyrocketing (over $1 trillion/year).

Spending Programs: Social Security, Medicare, defense, infrastructure, and emergency responses (e.g., COVID-19).

Tax Cuts: Lower revenue from cuts (like the 2017 Tax Cuts and Jobs Act) without equal spending reductions.

🧨 Risks of High National Debt:

RiskExplanationInterest BurdenMore tax dollars go to pay interest, not services or investmentInflation RiskToo much borrowing could trigger inflation (if monetized by the Fed)Crowding OutPrivate investment may be squeezed out due to rising interest ratesLoss of ConfidenceInvestors may demand higher yields or sell U.S. debtDebt Ceiling CrisesPolitical standoffs over raising the debt limit risk default

🌍 How It Compares Globally:

Japan: ~260% of GDP (highest among developed nations)

Italy: ~140%

U.S.: ~123%

Germany: ~66%

China: ~80–90% (but less transparent data)

🔮 Can the U.S. Repay the Debt?

Not in full—but it doesn't need to.

The government rolls over debt (issues new debt to pay off old debt).

As long as investors trust the U.S. dollar and buy Treasuries, the system holds.