As of July 2024, the total public debt outstanding reached $35,001,278,179,208.67, marking a significant increase of $2.35 trillion over the past 12 months12. This rapid growth averages about $6.4 billion per day, with the debt rising by $7.3 trillion since January 20213. To put this in perspective, the national debt was approximately $907 billion just four decades ago2. The current debt level equates to:

• $104,497 per person

• $266,275 per household

• $483,889 per child4

The debt-to-GDP ratio is projected to reach 99% this year, with forecasts indicating it will surpass 106% by 2027, breaking a nearly 80-year-old record set in 194625.

Several structural factors have contributed to the rapid increase in U.S. national debt:

• An aging population, particularly the baby-boom generation, has led to increased spending on entitlement programs like Social Security and Medicare1

• Rising healthcare costs continue to drive up federal expenditures1

• The current tax system fails to generate sufficient revenue to cover government spending, resulting in persistent budget deficits1

• Increased government outlays for defense, social programs, and economic stimulus measures, including responses to events like the 2008 financial crisis and the COVID-19 pandemic23

Additionally, tax cuts enacted in 2001, 2003, and 2017 have significantly reduced federal revenues, with the 2017 cuts alone projected to add $22 trillion to the national debt by 20344.

The cost of servicing the national debt has become one of the fastest-growing components of the federal budget, with interest payments projected to reach $868 billion in fiscal year 2024, accounting for 17% of total federal spending1. This rising interest expense poses a significant threat to U.S. financial stability and the status of the dollar as a global reserve currency. Economic projections indicate that interest costs will surge to almost four times the current 30-year average by 2053, surpassing all non-Social Security and non-health mandatory spending by 2027, all discretionary spending by 2047, and Social Security spending by 20512. The Congressional Budget Office estimates that the overall deficit for the 2024 fiscal year will be at least $1.9 trillion, potentially growing to $2 trillion when adjusted for certain factors3.

Policymakers and economists have expressed growing concern over the fiscal trajectory, with some advocating for deficit reduction through spending cuts and tax reforms, while others emphasize maintaining social safety nets and investing in economic growth1. The fiscal situation has prompted major credit rating agencies to downgrade their outlook on U.S. debt, citing concerns over fiscal deterioration and increasing interest payments2. Despite the urgency of the issue, it has received limited attention from presidential candidates in the 2024 election cycle, highlighting the political challenges of addressing long-term fiscal sustainability3.