Drew Wood
At the moment, the United States just recently ticked over $36 trillion in debt … and in the time it took you to read those words the interest on the debt went up another $100,000. How did we get to this point? Who do we owe all this money to? Should we be worried?
How Did the National Debt Grow So Large?
Just like a family budget, the national budget goes into debt when spending is higher than revenues. Crises like wars and the Great Depression caused the United States to incur heavy debt in the past, but in more recent years the debt has increased because of military spending and social programs that are inadequately covered by tax revenues. On average, the U.S. government takes in about $4.4 trillion in revenues every year but spends $6.1 trillion.
Debt Interest: Money Down the Drain
Every day, the U.S. government spends $2.4 billion just on interest on the national debt. Projections indicate that within a decade, interest payments on the debt will surpass what the country spends on Medicare, Medicaid, or discretionary defense items. That’s money that could fund other underfunded programs or do new beneficial things like provide expanded mental health services for veterans, small business loans, improve school funding, build infrastructure, or protect the environment.
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