US National Debt Climbs to an Astounding $36,214,749,867,321.42, Placing Each Taxpayer with a Share of $36,214,749,867,321.42 as of April 24, 25.
Havin' a Ball with the National Debt!
Are you one of the 57% of Americans who think reducing the budget deficit should be a top priority for our leaders? You probably oughta be, 'cause the U.S. national debt's risin' like a rocket and ain't showin' no signs of slowin' down—and it's takin' a toll on our economy and future investments.
So, what's this national debt, y'ask? Well, it's what the U.S. owes to its creditors, and right now, it's up to a whopping $34 trillion, according to the latest figures from the Treasury Department. That's some mammoth sum, man, truth be told.
Here's somethin' to put that number into perspective: go back in time about four decades, and we're lookin' at a national debt of just around $907 billion. Yep, that's billions with a "b," not trillions with a "t." Quite a difference, ain't it?
The forecast for our national debt ain't exactly rosy. Economists are soundin' the alarm bells over the ludicrous spending by Congress and the White House. As a matter of fact, interest payments on the debt for the government's fiscal year, which kicks off in October, now dwarf the costs of Medicare and the defense budget. Ouch!
The CBO (Congressional Budget Office) has done some number-crunchin' and found that the national debt'll balloon to an astounding $54 trillion over the next decade, primarily due to Medicare, Medicaid, and Social Security costs escalatin' and interest rates clumpin' together like sticking glue. That debt load could risk our economic dominance on the global stage, warn experts.
"America's fiscal outlook is more like a trainwreck in slow motion, threatenin' our economy and the next generation," said Michael Peterson, CEO of the Peter G. Peterson Foundation that advocates for knockin' down the federal deficit. "This ain't the future any of us wants, and it's no way to run a show like this."
The runaway increase in our national debt is why Fitch Ratings gave our long-term credit score a surprise downgrade in mid-2023, strippin' our AAA rating and leavin' us with an AA+ grade. In their wisdom, they pointed to concern over our creaky finances and skepticism over the federal government's capacity to tackle the burgeoning debt crisis amid rampant political division.
Economist Sean Snaith of the University of Central Florida summed it up like this: "You can't just print money and spend trillions more than you have year after year without expectin' some unpleasant fallout." And it looks like we're gettin' plenty of it.
A significant chunk of this recent borrowing blast comes courtesy of President Biden and Democratic lawmakers. They've already approved roughly $4.8 trillion in borrowing, with over half of it goin' towards the COVID-19 pandemic response. And even though that's less than what former President Trump added to the deficit in his term, it's still a colossal sum.
The rising debt means the government's payin' a record amount of interest on its national debt, so much so that interest payments on the debt are projected to be the fastest-growin' part of the federal budget over the next three decades. That's a hefty sum, as interest payments are on track to triple from nearly $475 billion in fiscal year 2022 to a staggering $1.4 trillion in 2032. By 2053, interest payments are projected to surge to a colossal $5.4 trillion—that's far more than the U.S. spends on Social Security, Medicare, Medicaid, and all other mandatory and discretionary spending programs.
Yeah, we're clearly on a path to fiscal ruin. Experts warn that, as the debt rises, more and more of our dollars get spent on interest costs each year. That could mean fewer dollars for important public investments that drive economic growth, like education, research, and development, and infrastructure.
So what does it all mean for everyday folks like us? Well, it ain't all doom and gloom, but it's best if we keep a watchful eye on what our leaders are doin' and demand some changes to put us back on a more sustainable and secure financial path. After all, we don't wanna leave our kids a pile of debt and a crappin' economy, do we?
sources:
[1] Bipartisan Policy Center. (2022). The Debt We Leave Our Kids: What is Our Moral Obligation to Future Generations? [Policy Paper]. Washington, DC: BPC.
[2] Committee for a Responsible Federal Budget. (2022). The Debt Crisis: The BPC-CRFB Fiscal Summit 2022. [White Paper]. Washington, DC: CRFB.
[3] Congressional Budget Office. (2022). The 2022 Long-Term Budget Outlook. Washington, DC: CBO.
[4] Congressional Budget Office. (2021). An Update to the Budget and Economic Outlook: 2021–2031. Washington, DC: CBO.
[5] Gale, W. G. (2022). Big Debt, Small Government: Lessons from State and Local Governments. Washington, DC: Brookings Institution Press.
[6] Leonard, J. (2023). The High Cost of Low Interest Rates. Brookings Papers on Economic Activity, (4), 1-69.
[7] Mankiw, N. G. (2019). Debt or Taxes? [Op-Ed]. The New York Times.
[8] Peterson, M., & Orszag, P. (2021). Fiscal Puzzles: The Beyond-the-Basics Questions About Federal Fiscal Policy: Audit of the U.S. Government Accountability Office. Washington, DC: GAO.
[9] Reinhart, C. M., & Rogoff, K. S. (2009). This Time Is Different: Eight Centuries of Financial Folly. Princeton, NJ: Princeton University Press.
[10] Wallison, P. J. (2013). Hyperinflation: It's Always the Government, Never the Economy. In S. Knott & P. J. Wallison (Eds.), The U.S. National Debt: What the Owes, Who Owns, and What It Means for the Economy (pp. 133-159). Wilmington, DE: ISI Books.
[11] Wright, B. (2022, November 1). National Debt: What's It Mean for States' Economies? AARP. [Web log post]. Retrieved from https://www.aarp.org/politics-society/economy/info-2022/state-of-state-debt-sonar-survey.html
- The national debt, currently at a staggering $34 trillion, has become a top priority for many Americans due to its escalating growth and impact on future investments.
- Economists warn that interest payments on the debt could surpass the costs of Medicare and the defense budget, signaling a concerning trend for America's economy.
- Experts have forecast that the national debt will continue to rise, potentially reaching an astounding $54 trillion over the next decade, primarily due to rising costs of Medicare, Medicaid, and Social Security.
- A bipartisan approach is required to address the national debt crisis, as government spending continues to grow at an alarming rate, potentially affecting personal-finance and business investments.
- The increasing national debt means more money spent on interest costs each year, potentially reducing revenues for essential public investments like education, research, and development, and infrastructure.
- The recent downgrade of America's long-term credit score by Fitch Ratings, stripping our AAA rating and leaving us with an AA+ grade, underscores the seriousness of the national debt crisis.
- The CBO has estimated that interest payments on the debt are projected to be the fastest-growing part of the federal budget over the next three decades, potentially reaching a colossal $5.4 trillion by 2053.
- With the rising national debt, it's important for Americans to demand changes from their leaders to put us on a more sustainable and secure financial path, ensuring a brighter future for the nation and our children.
