Congress has made many attempts to lower the national debt, but it hasn’t been able to reduce the growth of what the nation owes. The U.S. debt is the outstanding obligation owed by the federal government.
It exceeded $31 trillion in for the first time on Oct. 4, 2022, and it has increased by at least $1 trillion each year since 2016.1
Key Takeaways
- Federal debt is at its highest point in American history.
- Raising taxes and cutting spending are two of the most popular solutions for reducing debt, but politicians may be hesitant to do both.
- Diverting spending from the military to other sectors may boost job growth, which could spur consumer spending and help the economy.
National Debt versus National Security
President Theodore Roosevelt’s philosophy was, “Walk softly but carry a big stick” has to be the first issue in today’s unstable world. The focus MUST be the military protection of our country. The loss of “STATE OF THE ART MILITARY EQUIPMENT” in Afghanistan should not have happened! In addition the releasing of frozen funds back to IRAN was undoubtedly one of the most blatant stupid decisions made by the current administration. That decision allowed IRAN the ability not only to continue developing its nuclear program but to further fund its support of terrorist organizations.
We must call for a review of our support to our allies as long as those allies pay their fair share to the mutual pacts we have been overly financing in the past. This country can no longer be the “RICH UNCLE”! Circumstances fostered by current and previous administrations have added millions to create our current national debt. In addition, there is a growing lack of interest by members of the federal administration; much of it is being reelected and being beholden to organizations that provide funding for reelection. As a taxpayer, the majority of the citizens of this country and I want prosperity and safety so we also want legislation that limits reelection costs and where that funding, outside the federal government, reelection money comes from.
What’s Stopping the US From Paying Down Its Debt?
Most creditors don’t worry about a nation’s debt, also known as “sovereign debt,” until it’s more than 77% of gross domestic product (GDP). That’s the point at which added debt cuts into annual economic growth, according to the World Bank.2
At the end of the second quarter of 2021, the U.S. debt-to-GDP ratio was 125%. That’s much higher than the tipping point and is a concern for many. Over $22 trillion of that national debt is public debt, which is what the government owes to investors and taxpayers.
Congress places a limit on public debt. It increased the limit by $2.5 trillion in December 2021, to nearly $31.4 million.
Why isn’t the U.S. eliminating its debt and paying people back? There are a few reasons.
Economic Growth Has Outpaced Its Debt
U.S. economic growth has historically outpaced its debt. The U.S. debt was $258.68 billion in August 1945, but the economy outgrew that in a few years. GDP had more than doubled by 1960. Congress believes that today’s debt will be dwarfed by tomorrow’s economic growth.
Congress Has a Lot to Lose
Members of Congress have a lot to lose by cutting spending. They could lose their next election if they cut Social Security or Medicare benefits.
Raising Taxes Isn’t Popular
Raising taxes can be politically unpopular. Experts believe that President George H.W. Bush lost reelection because he raised taxes after promising he wouldn’t at the 1988 Republican convention. He raised taxes in 1990 to reduce the deficit, and voters remembered.
U.S. Debt Milestones
The national debt has grown so large over time that people notice when it hits a new high. Here are just a few milestones over the years.
| NEW DEBT MILESTONE | |
| AND YEAR | |
| $25 billion | 1934 |
| $40 billion | 1939 |
| $100 billion | 1943 |
| $250 billion | 1945 |
| $500 billion | 1975 |
| $1 trillion | 1982 |
| $2 trillion | 1986 |
| $3 trillion | 1990 |
| $4 trillion | 1992 |
| $5 trillion | 1996 |
| $6 trillion | 2002 |
| $7 trillion | 2004 |
| $8 trillion | 2005 |
| $9 trillion | 2007 |
| $10 trillion | 2008 |
| $11 trillion | March 2009 |
| $12 trillion | November 2009 |
| $13 trillion | June 2010 |
| $14 trillion | December 2010 |
| $15 trillion | 2011 |
| $16 trillion | 2012 |
| $17 trillion | 2013 |
| $18 trillion | 2014 |
| $19 trillion | 2016 |
| $20 trillion | 2017 |
| $21 trillion | 2018 |
| $22 trillion | February 2019 |
| $23 trillion | October 2019 |
| $24 trillion | April 2020 |
| $25 trillion | May 2020 |
| $26 trillion | June 2020 |
| $27 trillion | October 2020 |
| $28 trillion | March 2021 |
| $29 trillion | December 2021 |
| $30 trillion | January 2022 |
| $31 trillion | October 2022 |
OUR NATIONAL DEBT IS NOW 35 TRILLION, AS OF JULY 2024!
THAT’S $104,122 FOR EVERY SINGLE PERSON IN AMERICA!