National debt of the U.S. - statistics & facts
The national debt of the United States has doubled over the last decade, exceeding 34 trillion U.S. dollars, or 93,500 U.S. dollars per person, in 2024. The nation's persistently high budget deficit has been accelerated by several major events, including the wars in Iraq and Afghanistan, the 2008 financial crisis, and the COVID-19 epidemic While the U.S. has a statutory limit on federal debt, this limit has been raised repeatedly to accommodate new levels of debt. The debt ceiling was last raised in 2021 to 31.38 trillion U.S. dollars, which the U.S. hit in January, 2023.
In general, a high debt to GDP ratio has been seen as undesirable for a country given that it communicates to financial markets a high risk of default. Greece, for example, has one of the highest debt to GDP ratios and struggled significantly in the face of the financial crises that swept the globe in the late 2000s. However, countries like the U.S. and Japan have been able to safely maintain high debt to GDP ratios for more than a decade - with Japan's exceeding of over 200 percent - without a perceived risk of default. Paradoxically, while the U.S. has one of the highest debt to GDP ratios worldwide, U.S. treasury bonds are perceived as one of the safest investments on the market.
Government spending
Total government outlays have exceed government receipts for many years. Much of government spending goes towards Social Security - the program that provides funding for retirement, disability, and veteran benefits. Politicians in the country are split as to the best way to tackle the growing deficit. Those in the Republican Party would prefer to see government spending on programs like Social Security or Medicare cut back. Meanwhile members of the Democratic Party are more likely to support increasing taxes on the wealthiest to make up for the shortfall. While both parties are quick to blame one another for problems with the nation’s finances, debt has accumulated significantly under presidents of both parties.Government debt
Federal debts are additionally an added expense on the taxpayer. In 2022 alone the U.S. government spent a total of 724 billion U.S. dollars on the interest of its debt. Even though the U.S. government tends to enjoy lower interest rates on its debt than classic interest rates, the sheer size of federal debts means that the government is spending more than twice what it spends on education each year on interest alone. This high level of debt also means that the United States is among the countries with the highest debt to GDP ratio.In general, a high debt to GDP ratio has been seen as undesirable for a country given that it communicates to financial markets a high risk of default. Greece, for example, has one of the highest debt to GDP ratios and struggled significantly in the face of the financial crises that swept the globe in the late 2000s. However, countries like the U.S. and Japan have been able to safely maintain high debt to GDP ratios for more than a decade - with Japan's exceeding of over 200 percent - without a perceived risk of default. Paradoxically, while the U.S. has one of the highest debt to GDP ratios worldwide, U.S. treasury bonds are perceived as one of the safest investments on the market.
