#USNationalDebt

The **U.S. national debt** represents the total money the federal government owes to creditors. As of late 2024, it was about **$35.8 trillion**, stemming from years of budget deficits where spending exceeded revenue.

### Key Components

- **Public Debt**: Treasury securities held by individuals, corporations, foreign governments, and institutions.

- **Intragovernmental Holdings**: Funds borrowed internally, such as from the Social Security Trust Fund.

### Why It Matters

Borrowing allows the government to fund programs, infrastructure, and respond to crises. However, excessive debt increases interest payments and limits future fiscal flexibility.

### Debt-to-GDP Ratio

A crucial indicator of economic health, this ratio was around **120%** in 2024. A high ratio can raise concerns about long-term sustainability.