US National Debt Tops $34T for First Time in History

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Facts

  • According to the latest data from the US Dept. of the Treasury, total public debt in America has reached $34T for the first time in history.1
  • As of Dec. 29, 2023, intragovernmental debt — debt the federal government owes to itself — had reached almost $7.1T, while debt held by the public — all debt outside of the US government, less Federal Financing Bank (FFB) securities — sat at $26.9T.2
  • The Treasury's latest data sees a rise of 8.5% since Dec. 29, 2022 (approximately $2.7T) — when total public debt sat at $31.3T. In this period, debt held by the public rose by 10.1% (approximately $2.5T from $24.5T), while intragovernmental debt rose by 3.1% (approximately $213B from $6.9T).2
  • Prior to the COVID pandemic, a Congressional Budget Office report from January 2020 predicted debt to reach 180% of gross domestic product by 2050.3
  • More recently, the Office's budget and economic outlook report for 2023-2033 — published last February — predicted a federal budget deficit of $1.4T, as well as gross federal debt of $32.4T in 2023.4
  • In June 2023, Republican lawmakers in Congress reached an agreement with the White House to temporarily lift the US debt limit until January 2025. US debt now equates to approximately $100K per person.1

Sources: 1Associated Press, 2Reuters.com, 3Congressional Budget Office (a) and 4Congressional Budget Office (b).

Narratives

  • Republican narrative, as provided by Federalist. The White House continues to act as if throwing money at every problem is a solution. The Biden administration’s abysmal deficit record is only superseded by the effects of the COVID pandemic. Democrats are failing the American people by plunging the country further and further into debt through unpopular spending decisions, which could eventually lead to America's economic collapse unless reckless spending is curtailed. Both parties are to blame due to bad Beltway habits but the Democrats have been unscrupulous.
  • Democratic narrative, as provided by Guardian. The Republicans are using bad-faith rhetoric when it comes to US debt. Historically, US debt has spiraled because of Republican-led tax cuts for corporations and the wealthy, most recently spearheaded by the Trump administration. Income inequality must be addressed, and the rich must be taxed fairly. Republicans must acknowledge that’s the real root of the country's financial problems.

Predictions