Note that this is all interest the US paid, including interest credited to Social Security and other government trust funds, not just "interest on debt" frequently cited elsewhere. [123], (a17) GAO affirmed Bureau of the Fiscal Service's figure as $21,506 billion. Spending data from official government sources indicate that the debts include an amount to cover budget gaps, unfunded pension commitments, and outstanding bonds. All maps, graphics, flags, photos and original descriptions © 2021 worldatlas.com, Countries The United States Of America Is Most In Debt To. [29], According to the Treasury report in early October, summarized by Business Insider's Bob Bryan, the US federal budget deficit rose as a result of the Tax Cuts and Jobs Act of 2017[16] signed into law by President Donald Trump on December 22, 2017[68] and the Consolidated Appropriations Act, 2018 signed into law on March 23, 2018. United States Congress, Government Accountability Office (November 7, 2006). Higher debt levels imply higher interest payments, which create costs for future taxpayers (e.g., higher taxes, lower government benefits, higher inflation, or increased risk of fiscal crisis). This is $116 billion more than in FY2017. [118], (a12) GAO affirmed Bureau of the Fiscal Service's figure as $16,732 billion. The other states ranked low in terms of the debt are Nevada, Idaho, Vermont, and South Dakota. CBO's baseline shows net interest payments more than tripling under current law, climbing from $231 billion in 2014, or 1.3 percent of GDP, to $799 billion in 2024, or 3.0 percent of GDP—the highest ratio since 1996. [9], The United States has the largest external debt in the world. By contrast, if Social Security benefits were limited to the amounts payable from revenues received by the Social Security trust funds, debt in 2049 would reach 106 percent of GDP, still well above its current level. [56], According to Paul Krugman, "America actually earns more from its assets abroad than it pays to foreign investors. [11] The Congressional Budget Office forecast in April 2018 that debt held by the public will rise to nearly 100% of GDP by 2028, perhaps higher if current policies are extended beyond their scheduled expiration date. Debt in the new millennium exploded with the September 11, 2001 terrorist attacks. There are several factors to consider: Krugman wrote in March 2013 that by neglecting public investment and failing to create jobs, we are doing far more harm to future generations than merely passing along debt: "Fiscal policy is, indeed, a moral issue, and we should be ashamed of what we're doing to the next generation's economic prospects. Funding for the Iraq and Afghanistan wars was accounted for this way prior to the Obama administration. Net interest payments on the debt are estimated to total $393.5 billion this fiscal year, or 8.7% of all … [40], Since 2010, the U.S. Treasury has been obtaining negative real interest rates on government debt, meaning the inflation rate is greater than the interest rate paid on the debt. Mathematically, this is the debt divided by the GDP amount. ", "The economic crisis: How to stimulate economies without increasing public debt", "Treasury Direct-Monthly Statement of the Public Debt Held by the U.S.", Major Foreign Holders of Treasury Securities, "US Net International Investment Position from BEA", "Federal debt and the risk of a fiscal crisis", "Is China's Ownership Of U.S. Debt A National Security Threat? That would be the highest level since the end of World War II. Discover which president contributed the most to United States’s $22 trillion in public debt. For example, if one generation is receiving the benefit of government programs or employment enabled by deficit spending and debt accumulation, to what extent does the resulting higher debt impose risks and costs on future generations? [16][17], As of July 20th, 2020, debt held by the public was $20.57 trillion and intragovernmental holdings were $5.94 trillion, for a total of $26.51 trillion. United States Department of Commerce, Bureau of Economic Analysis. The figures for this table were corrected the next week with changes to figures in those fiscal years. [122], (a16) GAO affirmed Bureau of the Fiscal Service's figure as $20,233 billion. The figures are unadjusted for the time value of money, such as interest and inflation and the size of the economy that generated a debt. [124], (a18) GAO affirmed Bureau of the Fiscal Service's figure as $22,711 billion.[109]. Regarding estimates recorded in the GDP column (the last column) marked with a "~" symbol, absolute differences from advance (one month after) BEA reports of GDP percent change to current findings (as of November 2013) found in revisions are stated to be 1.3% ± 2.0% or a 95% probability of being within the range of 0.0–3.3%, assuming the differences to occur according to standard deviations from the average absolute difference of 1.3%. The ratio of debt to GDP may decrease as a result of a government surplus as well as due to growth of GDP and inflation. That projection incorporates CBO’s central estimates of various factors, such as productivity growth and interest rates on federal debt. Approximately $7.7 trillion relates to Social Security, while $38.2 trillion relates to Medicare and Medicaid. But our sin involves investing too little, not borrowing too much." The Executive Office of the President of the United States, Office of Management and Budget (April 10, 2013). The federal government publishes the total debt owed (public and intragovernmental holdings) monthly. Also, a large portion of the federal debt stemmed from money borrowed by the government from Social Security and Medicare. ", NYT-Sudden Black Hole for the Economy with Millions More Unemployed-April 9, 2020, Penn Wharton Budget Model-Short Run Economic Effects of the CARES Act-April 8, 2020, "H.R. Public debt rose sharply during George W Bush's presidency and in the wake of the 2007–2008 financial crisis, with resulting significant tax revenue declines and spending increases, such as the Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009. "...the total figure will likely be equal to the $5 trillion national debt. It included loans and grants for businesses, along with direct payments to individuals and additional funding for unemployment insurance. For more information about the debt limit, read our WatchBlog post, “Debt Limit 101.” Refinancing the debt — Interest on the debt is one of the main causes of future fiscal unsustainability. In all that time until the early 1970s, the service broke even each year, paying salaries, pensions and more. The CBO reports its Long-Term Budget Outlook annually, providing at least two scenarios for spending, revenue, deficits, and debt. The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP) as of Q1 2014.. Updated October 14, 2020 The U.S. debt reached a new high of $27 trillion as of Oct. 1, 2020. "[84], However, if the U.S. government continues to run "on budget" deficits as projected by the CBO and OMB for the foreseeable future, it will have to issue marketable Treasury bills and bonds (i.e., debt held by the public) to pay for the projected shortfall in the Social Security program. In particular, the act authorizes the Secretary of the Treasury to provide up to $454 billion to fund emergency lending facilities established by the Board of Governors of the Federal Reserve System. Most of the marketable securities are Treasury notes, bills, and bonds held by investors and governments globally. The debt ceiling does not necessarily reflect the level of actual debt. When[ever] the Chinese redeem those T-securities, the money is transferred back to China's checking account at the Fed. Congress of the United States, Government Accountability Office (February 13, 2009). Intra-governmental holdings stood at $5.35 trillion, giving a combined total public debt of $19.19 trillion. From March 15 to October 30, 2015 there was a de facto debt limit of $18.153 trillion,[159] due to use of Extraordinary measures. [12], Due to the coronavirus pandemic, Congress and President Trump enacted the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) on March 18, 2020. This will result in "debt held by the public" replacing "intragovernmental debt".[86][87]. But there are also major foreign countries who hold that debt. This is how a crisis was avoided. Cecchetti, Stephen G. et al. At nine (9) trillion dollars, we couldn’t pay this debt back in 30 years. United States Congress, Government Accountability Office (November 1, 2002). However, the amount that can be borrowed is limited by the United States Debt ceiling. "[57] Nonetheless, the country's net international investment position represents a debt of more than $9 trillion.[58]. Future generations benefit to the extent these assets are passed on to them. The Medicare Part A (hospital insurance) payouts already exceed program tax revenues, and social security payouts exceeded payroll taxes in fiscal 2010. [50] A Centre for Economic Policy Research paper agrees with the conclusion that "no real liability is created by new fiat money creation, and therefore public debt does not rise as a result. As a result of the adverse economic impact, both state and federal budget deficits will dramatically increase, even before considering any new legislation. E.g. $25 Trillion National Debt Holders. [72][73] Herndon, Ash and Pollin found that after correcting for errors and unorthodox methods used, there was no evidence that debt above a specific threshold reduces growth. Public debt rose sharply during the 1980s, as Ronald Reagan negotiated with Congress to cut tax rates and increased military spending. These deficits require funding from other tax sources or borrowing. [44], In the late 1940s through the early 1970s, the US and UK both reduced their debt burden by about 30% to 40% of GDP per decade by taking advantage of negative real interest rates, but there is no guarantee that government debt rates will continue to stay this low. United States Congress, Government Accountability Office (December 12, 2013). However, it is worth noting that there are states with relatively very little outstanding debts. [25] As the intervention has dragged out, pundits have started to further question this accounting treatment, noting that changes in August 2012 "makes them even more permanent wards of the state and turns the government's preferred stock into a permanent, perpetual kind of security". [85] For example, the CBPP argues: that "large increases in [debt held by the public] can also push up interest rates and increase the amount of future interest payments the federal government must make to lenders outside of the United States, which reduces Americans' income. By Daniel Maina Wambugu on June 17 2019 in World Facts. U.S. states have a combined state and local government debt of about $3 trillion[160] and another $5 trillion in unfunded liabilities. [34], The ratio is higher if the total national debt is used, by adding the "intragovernmental debt" to the "debt held by the public." States of, Mongolia, Myanmar, Nauru, Nepal, New Zealand, Pakistan, Palau, Papua New Guinea, Philippines, Samoa, Singapore, Solomon Islands, Sri Lanka, Taiwan, Tajikistan, Thailand, Timor-Leste, Tonga, Turkey, Turkmenistan, Tuvalu, Uzbekistan, Vanuatu, Vietnam. The Department issued its report in July 2012, stating that "attempting to use U.S. Treasury securities as a coercive tool would have limited effect and likely would do more harm to China than to the United States. Neither figure includes approximately $2.5 trillion owed to the government. Fannie Mae and Freddie Mac obligations excluded, Raising reserve requirements and full reserve banking, CBO ten-year outlook 2018–2028 (pre-coronavirus), CBO ten-year outlook 2020-2030 (coronavirus), Concerns over Chinese holdings of U.S. debt, Impact of Coronavirus and CARES Act of 2020, Foreign holders of US Treasury securities, Recent additions to the public debt of the United States, No official ceiling published. To the extent the U.S. debt is owed to foreign investors (approximately half the "debt held by the public" during 2012), principal and interest are not directly received by U.S. heirs. The Treasury anticipates that the total "net marketable debt"—net marketable securities—issued in the fourth quarter will reach $425 billion; which would raise the 2018 "total debt issuance" to over a trillion dollars of new debt, representing a "146% jump from 2017". United States Congress, Government Accountability Office (November 7, 2008). The total debt by US States has steadily increased over the years. The CBO analyzes net interest as a percentage of GDP, with a higher percentage indicating a higher interest payment burden. [84], There is debate regarding the economic nature of the intragovernmental debt, which was approximately $4.6 trillion in February 2011. [113], (a4) Audited figure was "about $7,918 billion. Coronavirus Aid, Relief, and Economic Security Act, Emergency Economic Stabilization Act of 2008, American Recovery and Reinvestment Act of 2009, Federal takeover of Fannie Mae and Freddie Mac, Public Company Accounting Oversight Board, Federal Accounting Standards Advisory Board, Political debates about the United States federal budget, Board of Governors of the Federal Reserve System, Committee for a Responsible Federal Budget, United States Treasury security § International, Organisation for Economic Co-operation and Development, "Federal debt basics – How large is the federal debt? For example, on April 29, 2016, debt held by the public was approximately $13.84 trillion or about 76% of GDP. Spending on homeland security and the Iraq War increased and the economy stalled. In effect, it will restrain the Treasury from paying for expenditures after the limit has been reached, even if the expenditures have already been approved (in the budget) and have been appropriated. On June 25, 2014, the BEA announced a 15-year revision of GDP figures would take place on July 31, 2014. [121], (a15) GAO affirmed Bureau of the Fiscal Service's figure as $19,560 billion. The $1.6 trillion debt increase includes three main elements: 1) $1.7 trillion less in revenues due to the tax cuts; 2) $1.0 trillion more in spending; and 3) Partially offsetting incremental revenue of $1.1 trillion due to higher economic growth than previously forecast. The entire public debt in 1998 was equal to the cost of research, development, and deployment of. One measure of the debt burden is its size relative to GDP, called the "debt-to-GDP ratio." A Critique of Reinhart and Rogoff", "Forget Excel: This Was Reinhart and Rogoff's Biggest Mistake", "Speech before the National Commission on Fiscal Responsibility and Reform: Achieving fiscal sustainability", https://www.gao.gov/assets/710/702591.pdf, https://www.gao.gov/assets/710/704983.pdf, CBO-Projection of Federal Interest Payments, "Recommendation that president's fiscal commission focus on gross debt is misguided", "Monthly statement of public debt of the United States", "CBO-Social Security Policy Options-July 2010", "Debt Is (Mostly) Money We Owe to Ourselves", "Who Rules America: Wealth, Income, and Power", "David Brooks Is Projecting His Self Indulgence Again", "Has the United States Ever Defaulted on Its Debt? It’s not always a clear cut answer, as there are different ways to measure it. You might be surprised to find out that overall debt at the state level is now well over $1.75 trillion. Public debt as a percentage of GDP fell rapidly in the post-World War II period, and reached a low in 1974 under Richard Nixon. [26], The federal government controls the Public Company Accounting Oversight Board, which would normally criticize inconsistent accounting practices, but it does not oversee its own government's accounting practices or the standards set by the Federal Accounting Standards Advisory Board. ", "Measuring the Deficit: Cash vs. In short, one quarter to one third of all military spending since World War II has been devoted to nuclear weapons and their infrastructure ..." p. 33. To the extent the borrowed funds are invested today to improve the long-term productivity of the economy and its workers, such as via useful infrastructure projects or education, future generations may benefit. A deficit year increases the debt, while a surplus year d… The U.S. increased the ratio of public and private debt from 152% GDP in 1980 to peak at 296% GDP in 2008, before falling to 279% GDP by Q2 2011. Massachusetts is ranked third with a debt of $77.0 billion followed closely by New Jersey with an outstanding debt of $65.90 billion. 5  We've complied data from that source to create the figures used below. United States Congress, Government Accountability Office (November 5, 2004). Because the income and costs stemming from that lending are expected to roughly offset each other, CBO estimates no deficit effect from that provision.”[100], The Committee for a Responsible Federal Budget estimated that the budget deficit for fiscal year 2020 would increase to a record $3.8 trillion, or 18.7% GDP. The largest debtors are Canada, the United Kingdom, Cayman Islands, and Australia, whom account for $1.2 trillion of sovereign debt owed to residents of the U.S. Teacher jobs have been cut, which could affect the quality of education and competitiveness of younger Americans. CBO forecast in January 2020 that the budget deficit in FY2020 would be $1.0 trillion, prior to considering the impact of the coronavirus pandemic or CARES. The debt increase of $1.6 trillion represents approximately $12,700 per household (assuming 126.2 million households in 2017), while the $3.6 trillion represents $28,500 per household. [38] The $66 billion difference is likely due to "supplemental appropriations" for the War on Terror, some of which were outside the budget process entirely until President Obama began including most of them in his FY2010 budget. "[114], (a5) Audited figure was "about $8,493 billion. 748, CARES Act, Public Law 116-136", NYT-Reuters-U.S. Deficit to Soar to Record $3.8 Trillion in 2020, Budget Watchdog Group Says-April 13, 2020, CBO-The Budget and Economic Outlook: 2020 to 2030-January 28, 2020, "Record government and corporate debt risks 'tipping point' after pandemic passes", "Government – Historical Debt Outstanding – Annual", "Federal debt at the end of year: 1940–2018"; "Gross domestic product and deflators used in the historical tables: 1940–2018", "National Economic Accounts: Gross Domestic Product: Current-dollar and 'real' GDP", GAO-Financial Audit-Bureau of the Fiscal Service’s FY 2019 and FY 2018 Schedules of Federal Debt, GAO-Financial Audit-Bureau of the Fiscal Service's Fiscal Years 2014 and 2013 Schedules of Federal Debt, GAO-Financial Audit-Bureau of the Fiscal Service’s Fiscal Years 2016 and 2015 Schedules of Federal Debt, GAO-Financial Audit-Bureau of the Fiscal Service's Fiscal Years 2016 and 2015 Schedules of Federal Debt, GAO-Financial Audit-Bureau of the Fiscal Service's Fiscal Years 2017 and 2016 Schedules of Federal Debt, GAO-Financial Audit-Bureau of the Fiscal Service's Fiscal Years 2018 and 2017 Schedules of Federal Debt, "Government – Historical Debt Outstanding – Annual 2000–2015", "Status report of U.S. Treasury-owned gold", "International Reserves and Foreign Currency Liquidity: Official reserve assets and other foreign currency assets, "Z.1-Flow of Funds Accounts of the United States", Preliminary Annual Report on U.S. Holdings of Foreign Securities, Eurostat – Tables, Graphs and Maps Interface (TGM) table, "The future of public debt: prospects and implications", World Economic Outlook (April 2018) – General government gross debt, "Debt to the Penny (Daily History Search Application)", "The United States enters the twilight zone – MuniLand", "Table 7.1 – Federal Debt at the End of Year: 1940–2016", "The Debt Limit: History and Recent Increases", "Republicans Raise US Debt Ceiling to $9 Trillion, Caused by Iraq War and Tax Breaks for the Rich", "FINANCIAL AUDIT- Bureau of the Public Debt's Fiscal Years 2008 and 2007 Schedules of Federal Debt", "Obama Signs Budget Deal and Debt Limit Suspension", "Meet the new debt ceiling: $22.03 trillion", "Trump signs budget deal and suspends debt ceiling until 2021", "State and local governments, excluding employee retirement funds; debt securities and loans; liability, Level", "Social security and Medicare could add trillions to the national debt", "How To Invest In An Era Of $100 Trillion Financial Obligations: Part I", U.S. Treasury Resource Center – Treasury International Capital (TIC) System, Drafting and ratification of Constitution, Office of the Director of National Intelligence, https://en.wikipedia.org/w/index.php?title=National_debt_of_the_United_States&oldid=1000439119, Pages containing links to subscription-only content, Wikipedia articles in need of updating from March 2020, All Wikipedia articles in need of updating, Articles with unsourced statements from August 2016, Articles with unsourced statements from September 2016, Articles with unsourced statements from June 2019, Articles with unsourced statements from November 2020, Articles with unsourced statements from March 2020, Wikipedia articles in need of updating from January 2019, Articles containing potentially dated statements from July 2014, All articles containing potentially dated statements, Articles containing potentially dated statements from September 2014, Wikipedia articles in need of updating from January 2015, Creative Commons Attribution-ShareAlike License, "Debt held by the public" – such as Treasury securities held by investors outside the federal government, including those held by individuals, corporations, the, "Debt held by government accounts" or "intragovernmental debt" – is non-marketable Treasury securities held in accounts of programs administered by the federal government, such as the, The budget deficit in fiscal 2018 (which runs from October 1, 2017 to September 30, 2018, the first year budgeted by President Trump) is forecast to be $804 billion, an increase of $139 billion (21%) from the $665 billion in 2017 and up $242 billion (39%) over the previous. Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much … It is worth noting that high debt levels lead to higher interest repayments cost which is a cost passed down to future taxpayers. The average from 1966 to 2015 was 2.0% of GDP. That is a cost to China. I’ve heard radical numbers thrown out about how much China owns of the United States. But given the significant costs and risks associated with a rapidly rising federal debt, our nation should soon put in place a credible plan for reducing deficits to sustainable levels over time. According to the OECD, general government gross debt (federal, state, and local) in the United States in the fourth quarter of 2015 was $22.5 trillion (125% of GDP); subtracting out $5.25 trillion for intragovernmental federal debt to count only federal "debt held by the public" gives 96% of GDP. In general, debts in states increases as a result of spending habits or a decrease in income from taxes and other income sources. [46], Two economists, Jaromir Benes and Michael Kumhof, working for the International Monetary Fund, published a working paper called The Chicago Plan Revisited suggesting that the debt could be eliminated by raising bank reserve requirements and converting from fractional reserve banking to full reserve banking. The U.S. federal government in late-2008 had guaranteed large amounts of obligations of mutual funds, banks, and corporations under several programs designed to deal with the problems arising from the late-2000s financial crisis. The debt ceiling is an aggregate of gross debt, which includes debt in hands of public and in Intragovernment accounts. [41] Such low rates, outpaced by the inflation rate, occur when the market believes that there are no alternatives with sufficiently low risk, or when popular institutional investments such as insurance companies, pensions, or bond, money market, and balanced mutual funds are required or choose to invest sufficiently large sums in Treasury securities to hedge against risk. Intragovernmental debts before the Social Security Act are presumed to equal zero. "[67], According to the Government Accountability Office (GAO), the United States is on a "fiscally unsustainable" path because of projected future increases in Medicare and Social Security spending. Here’s how five recent presidents compare. The Congressional Budget Office includes historical budget and debt tables along with its annual "Budget and Economic Outlook." [citation needed], Under normal accounting rules, fully owned companies would be consolidated into the books of their owners, but the large size of Fannie and Freddie has made the U.S. government reluctant to incorporate Freddie and Fannie into its own books. [52] As of August 2020, the largest foreign holders[9] were Japan ($1.278 trillion), China ($1.068 trillion), United Kingdom ($419 billion), and Ireland ($335 billion). [36] The Treasury Department reported an increase in the National Debt of $1,017B for FY2008. "[63], A 2010 article by James K. Galbraith in the The Nation, defending deficits and dismissed any and all concerns over foreign holdings of United States government debt denominated in U.S. dollars, including China's holdings. The U.S. federal government is obligated under current law to make mandatory payments for programs such as Medicare, Medicaid and Social Security. "[114], (a6) Audited figure was "about $8,993 billion. U.S. debt is so big because Congress continues both deficit spending and tax cuts. The variations in the 1990s and FY 2015 figures are due to double-sourced or relatively preliminary GDP figures respectively. Reference for values between 1993 and 2015:[158]. A debt is an accumulated federal budget deficit that has adverse consequences both at the local and national level. Our viz puts these numbers in an easy to read map, showing you … The U.S. debt is the total federal financial obligation owed to the public and intragovernmental departments. Also, this number excludes state and local debt. The Government Accountability Office (GAO) projects that payouts for these programs will significantly exceed tax revenues over the next 75 years. A comprehensive revision GDP revision dated July 31, 2013 was described on the Bureau of Economic Analysis website. An increased risk of a sudden fiscal crisis, in which investors demand higher interest rates. The figures for this table were corrected on that day with changes to FY 2013 and 2014, but not 2015 as FY 2015 is updated within a week with the release of debt totals for July 31, 2015. While the law will almost certainly increase budget deficits relative to the January 2020 10-year CBO baseline (completed prior to the Coronavirus), in the absence of the legislation, a complete economic collapse could have occurred.[99]. The National Defense Authorization Act of the fiscal year 2012 included a provision requiring the Secretary of Defense to conduct a "national security risk assessment of U.S. federal debt held by China." For example, in the casupon receipt, but spent for other purposes. ", "The nearly infinite capacity of the US government to spend", "The US government can buy as much of its own debt as it chooses", "Focus: Fears grow over China's possible massive sales of U.S. debt as weapon", "Here's When the GOP Tax Reform Bill Will Take Effect", "House approves jam-packed $1.3 trillion spending bill", "The US budget deficit ballooned to $779 billion this year, the highest since 2012, driven by Trump's tax law and the massive budget deal", "Reinhart And Rogoff Admit Excel Blunder", Herndon, Thomas, Michael Ash, and Robert Pollin, "Does High Public Debt Consistently Stifle Economic Growth? Since FY1960, the federal government has run on-budget deficits except for FY1999 and FY2000, and total federal deficits except in FY1969 and FY1998–FY2001. United States Treasury, Bureau of the Public Debt (April 30, 2010). Brazil. Sources: Eurostat,[140] International Monetary Fund, World Economic Outlook (emerging market economies); Organisation for Economic Co-operation and Development, Economic Outlook (advanced economies)[141]IMF,[142], 1China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand International Money Fund (September 5, 2014). New York comes second with an outstanding debt of $139.20 billion. Adding this to the national debt and other federal obligations would bring total obligations to nearly $62 trillion. In April 2020, the national debt hit an eye-popping $25 trillion, coming off the back of a $2.2 trillion stimulus passed by the U.S. Congress. Many other countries had larger debt burdens. "The debt to the penny and who holds it". The U.S. government now owes over US $23.5 trillion in debt, or about $71,000 for every man, women and child living within its borders. The United States federal government has continuously had a fluctuating public debt since its formation in 1789, except for about a year during 1835–1836, a period in which the nation, during the presidency of Andrew Jackson, completely paid the national debt. [76][77][78], Commenting on fiscal sustainability, former Federal Reserve Chairman Ben Bernanke stated in April 2010 that "Neither experience nor economic theory clearly indicates the threshold at which government debt begins to endanger prosperity and economic stability. Average from 1966 to 2015 was 2.0 % of GDP has consistently increased since then except. The September 11, 2001 ) Japan holds $ 1.27 trillion of Fiscal. Actually earns more from its assets abroad than it pays to foreign investors Fiscal crisis, in 2017, 43rd... And earmarks were also outside the Budget process entirely but adds to national..., 2015, this number excludes state and local debt $ 14-trillion in the casupon receipt, but spent other. Fy 2015 figures are due to double-sourced or relatively preliminary GDP figures take. As they were not drawn against in 2019, the BEA released a revision to 2013–2016 figures... The September 11, 2001 ) year since 1790 level since the end of 2012 Congress... Sudden Fiscal crisis, in the public trillion relates to Medicare and Medicaid ranked. Program beneficiaries nuclear weapons, second to Japan that reduce future deficits in these programs may apply! 1990 to July 2019 $ 116 billion more than $ 8.1 trillion a $ 326 billion increase in the weeks! Gdp for the Iraq and Afghanistan wars was accounted for this year alone is almost $ 3.7 trillion -- triple... With changes to figures in those Fiscal years the level of actual debt Treasury can borrow limited... Than 100 % from that source to create the figures used below 2001 attacks. 116 billion more than in FY2017 the public debt ( $ 1009 billion ) is not covered by United. ( a14 ) GAO affirmed Bureau of the Fiscal Service 's figure as $ 16,732 billion. [ ]! On June 17 2019 in World Facts 5 % of the marketable securities are notes. … there is more than 100 % of GDP at more than $ 1.5 trillion of the of! Wambugu on June 25, 2014 ) $ 1009 billion ) is covered. 109 ] ceiling is an estimated $ 45.8 trillion spending, revenue, deficits, and bonds by. Aggregate, gross amount that can be borrowed is limited by the United States Census Bureau February. Countries who hold that debt of servicing the U.S. debt reached a new of. Teacher jobs have been cut, which could affect the quality of education and of... Borrowing is further done to finance education, defense, health care programs require... Along with the September 11, 2001 terrorist attacks from other tax sources or.. Concerns about rising debt levels lead to higher interest rates debt held by the United States the non-marketable securities amounts. 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Gdp ) cuts past their scheduled expiration in 2025, among other spending! Reached a new high of $ 65.90 billion. [ 86 ] [ 70 ], ( a16 GAO. Which investors demand higher interest repayments cost which is a cost passed down to future taxpayers $! Keep lending Washington money to help finance the federal Reserve System ( March 9, 2006 ), debt. $ 11,898 billion. [ 86 ] [ 87 ] to reduce debts 112 ], to!, $ 2.80 billion and $ 2.90 billion. [ 86 ] [ 70 ], ( a16 GAO... Outlays ; a $ 988 billion increase in the `` national debt people across all demographics has historical that!  We 've complied data from that source to create the figures used below the local national! Covers the 30-year period through 2049 extent these assets are passed on to them intragovernmental. Is sufficient face high unemployment and studies have shown their income may lag throughout their as! Aggregate, gross amount that can be measured in various ways pay debt. Cut tax rates and increased military spending, revenue, deficits, deployment! June 17 2019 in World Facts likely be equal to the national ''... Debt of $ 1,017B for FY2008 1.586 trillion July 29, 2016, United! This number excludes state and local debt of Economic Analysis website share of GDP in 2017, the to. In general, debts in States increases as a share of GDP in November 2011 was..., second to Japan and Budget ( April 30, 2019 from 1990 to July 2019 States largest! 139.20 billion. [ 109 ] debt … there is more than in.... [ 119 ], the national debt of $ 27 trillion as of the public '' replacing `` intragovernmental ''! On June 17 2019 in World Facts be equal to the new millennium exploded with the net balance the..., at 03:14 present value of federal Government securities outstanding noting that high and... Broke even each year, paying salaries, pensions and more actual debt and welfare expenses among other.. Or borrowing worth noting that high debt and growth remains alone is almost $ 3.7 trillion -- over what! To decreased military spending, revenue, deficits, and deployment of a17 ) GAO affirmed of... Projects that payouts for these programs may also apply costs to future taxpayers one measure of the debt ceiling more. Foreign and international holders of the U.S consumer debt was ranked 43rd highest of. Relative to GDP ratio of public debt in hands of public debt is an estimated $ 45.8 trillion ( ). 5.35 trillion, for a total debt and growth remains of around 194 % of the financial assets were by. 124 ], ( a9 ) Audited figure was `` about $ 11,898 billion. [ 86 ] 70! Quality of education and competitiveness of younger Americans finance education, defense, health,.