Overnight, the National Debt Clock turned a big number: $35 trillion is the current national debt for the United States of America. That’s $104,000 of debt for every individual in the United States, and over $267,400 for every actual taxpayer.
The public debt to gross domestic product ratio for the U.S. is now 89.72%, not the highest in the world. That honor belongs to Japan, which has a public debt to GDP ratio of over 300%. Japan is also the largest foreign holder of U.S. treasury securities, with Japanese banks, pension funds, and other financial institutions holding more than $1.1 trillion at the end of 2023.
When the federal government spends more than it takes in, the government simply borrows money to cover the deficit. Each year as the debt grows, the interest rate on it gobbles up more and more of the taxpayers’ contributions.
In the past, large deficits were linked to national emergencies like major wars or the Great Depression. But in 2024, there is a structural issue that involves shrinking participation in the workforce, aging baby-boomer population, the explosion of health care costs and transfers of that cost to the taxpayers. Even while many Americans pay up to 50% of their salaries to the government in the way of local, state, and federal taxes, the debt is outstripping their contributions.
View the U.S. National Debt Clock at this link.
Utilizing the ‘Time Machine’ feature, this debt grows from $35T to $46T by 2028 (4-years), a whopping 31% in just 4-years(!!!). Do you expect any of your assets // salary – wage to grow accordingly?
The question isn’t when this will destroy the American economy. The question is will it be total destruction or recoverable?
We need to remember the politicians who are doing this so when it fails we can go collect from them.
I would bet that among the states and territories Alaska is the biggest offender, on a per capita basis, by just about any measure. Any analysis would require some subjective assumptions, and those could be argued without resolve or sensible conclusion. Also, Alaskans could point out some mitigating factors such as the huge percentage of federal and Native land, inordinately high rates of participation in SNAP and other welfare, and that almost all health care costs in Alaska are paid by one government agency or another. Those factors are woven together. The argument can be made that merely the number of government workers alone prohibits our economy from being productive.
Take away the Government spending, both State and Federal, and Alaska will wither to a shadow of its former self. That’s always been the case, because without oil, it’s tough to find any economic reason for being there.
The invaders and our own “minority communities “ cost a lot. Whites and small % of Asians are the only net positive tax contributing demographic . White population is plummeting so this is an unsustainable situation. It’s going to get ugly.
Oh, Nat…,
Even though your assertions might be technically correct, you are evidently intolerant and insensitive. Shame on you!
Let us boldly, proudly, and profligately spend many $trillions as we march onward, sensitive DEI people of this nation, to our inevitable financial Armageddon! On our happy way, let’s not neglect to tear down those visages of the four dead white males on Mt. Rushmore, who each would have lambasted our present federal government.
The deficits would be far less without the mindless 2017 tax cuts that primarily benefitted the top 1%. The 2017 cuts juiced inflation and now the economy will have to pay the piper
Oh “Frank “…
A new low.
Actually, the Treasury received more tax revenues after the cuts. People invested their savings and the economy expanded.
According to the Bureau of Labor Statistics, when Biden assumed the presidency, the inflation rate was 1.4 percent.
The elite have been enriching themselves courtesy of the money printer while throwing crumbs to the peasants and sowing division to keep the sheep distracted and fighting among themselves. Bread and circuses, I don’t doubt both the dnc and gop are having a good laugh while snorting coke at there pedo parties.
You mean that money printer in the basement of Treasury nicknamed “Democracy”. It must be defended at all costs!
SPOT ON Yukon Cornelious
Independence will be a harsh reality soon. You won’t have government handouts, Fiat currency or local big box stores. That’s the future unless hard decisions are made which won’t make life fun….
The 89.72% public debt to GDP ratio quoted includes federal, state and local spending in the GDP, as though this spending created anything. The reality is the ratio is far worse.
Non revenue tax cuts and pushing the Federal Reserve to artificially lower interest rates so interest payments on the debt were lowered which allowed you to spend and spend as you raised the debt was ridiculous. The same playbook is being advocated again. Move the social security threshold tax from 168,000 to 500,0000 and save this cherished program. Tax reform not tax cuts.
And $7.8 trillion of that was added during the Trump years, largely due to his tax cuts. Put that in your pipe and smoke it. Trickle Down is a fallacy, promulgated by the rich for their own benefit.
How many of the 65+ MRAK commenters, of which there are many, are willing to see their Medicare of SS cut to balance the budget? That’s what I thought – zero.
Doggy
These people were forced to pay taxes for the benefits.
You need to pay more taxes to cover their needs promised by your government.
The threshold tax on social security is 168,000. Move the tax to 500,000 and the problem is solved. Really think, Jamie Dimond, Jeff Bezos, LeBron James, and Elon Musk cannot afford to be taxed on 500,000 ? Our debt problem is simple, tax reform. Think the local dry cleaner should pay a higher tax rate than Apple Computer ?
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