001) The US is paying a record amount of interest on its debt. It’s only going to get worse
By Tami Luhby, CNN
Published 7:09 AM EST, Tue February 14, 2023
A) Higher interest payment in coming years
B) By 2032, interest costs (on its debt) will triple to more than $3 billion per day and to at least $9,400 per household, on average, according to the foundation (Peter G. Peterson Foundation).
002) What is the national debt?
A) The national debt ($31.45 T) is the total amount of outstanding borrowing by the U.S. Federal Government accumulated over the nation’s history.
https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/
B) The National Debt Explained
The national debt is the amount of money the federal government has borrowed to cover the outstanding balance of expenses incurred over time. In a given fiscal year (FY), when spending (ex. money for roadways) exceeds revenue (ex. money from federal income tax), a budget deficit results. To pay for this deficit, the federal government borrows money by selling marketable securities such as Treasury bonds, bills, notes, floating rate notes, and Treasury inflation-protected securities (TIPS). The national debt is the accumulation of this borrowing along with associated interest owed to the investors who purchased these securities. As the federal government experiences reoccurring deficits, which is common, the national debt grows.
C) The U.S. Treasury uses the terms “national debt,” “federal debt,” and “public debt” interchangeably.
D) The debt grew over 4,000% through the course of the American Civil War, increasing from $65 million in 1860 to $1 billion in 1863 and around $2.7 billion shortly after the conclusion of the war in 1865. The debt grew steadily into the 20th century and was roughly $22 billion after the country financed its involvement in World War I.
Notable recent events triggering large spikes in the debt include the Afghanistan and Iraq Wars, the 2008 Great Recession, and the COVID-19 pandemic. From FY 2019 to FY 2021, spending increased by about 50%, largely due to the COVID-19 pandemic. Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt.
E) Once the debt ceiling is reached, the federal government cannot increase the amount of outstanding debt, losing the ability to pay bills and fund programs and services. However, the Treasury can use extraordinary measures authorized by Congress to temporarily suspend certain intragovernmental debt allowing it to borrow to fund programs or services for a limited amount of time after it has reached the ceiling.
003) USAspending is the official open data source of federal spending information.
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