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?
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.
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.