As of May 1, 2023, the national debt of the United States stands at approximately $31.46 trillion. This amount represents the total of all outstanding borrowed money the federal government has accumulated over time. The national debt grows when the government spends more money than it earns, resulting in a budget deficit. These deficits accumulate over the years, increasing the national debt.
The U.S. Treasury uses terms like “national debt,” “federal debt,” and “public debt” interchangeably to refer to this total debt. The federal government borrows money to fund various programs and services, especially when its spending activities and investments exceed federal revenues. This borrowing is necessary for the government to continue funding critical programs and services that contribute to the health, welfare, and security of U.S. residents.
Notably, the national debt has seen significant increases during certain periods, especially in response to major events such as the Afghanistan and Iraq Wars, the 2008 Great Recession, and the COVID-19 pandemic. For instance, from Fiscal Year 2019 to Fiscal Year 2021, spending increased by about 50%, largely due to the pandemic. Tax cuts, stimulus programs, increased government spending, and decreased tax revenue due to widespread unemployment are some of the factors that have contributed to these sharp rises in the national debt.
It’s important to consider the national debt in relation to the country’s Gross Domestic Product (GDP). The U.S. debt-to-GDP ratio, which is a measure of the national debt as a percentage of the country’s economic output, surpassed 100% in 2013, indicating the size of the debt relative to the nation’s ability to repay it.
For more detailed information, you can explore sources like USAFacts oai_citation:1,What is the US national debt and how has it grown over time? and Fiscal Data from the U.S. Treasury oai_citation:2,Understanding the National Debt | U.S. Treasury Fiscal Data.