Is the U.S. national debt a problem?

Yes, the U.S. national debt is widely considered a significant problem by many economists and policymakers, threatening future economic growth, limiting fiscal flexibility for crises, increasing borrowing costs for everyone, and potentially undermining U.S. global financial standing, though some economists associated with Modern Monetary Theory (MMT) argue it's less concerning for a country issuing its own currency. High debt leads to larger interest payments, diverting funds from essential investments in education, infrastructure, and research, while increasing risks of higher interest rates for families and businesses.

Who owns over 70% of the U.S. debt?

Who owns the most U.S. debt? Around 70-80 percent of U.S. debt is held by domestic financial actors and institutions in the United States. U.S. Treasuries represent a convenient, liquid, low-risk store of value.

How bad is the debt in the US?

The average GDP for fiscal year 2025 was $30.36 T, which was less than the U.S. debt of $37.64 T. This resulted in a Debt to GDP Ratio of 124 percent. Generally, a higher Debt to GDP ratio indicates a government will have greater difficulty in repaying its debt.

Can the US get out of debt?

Yes, the U.S. can get out of debt, but it requires significant, often controversial, fiscal changes like substantial spending cuts (Social Security, Medicare), tax increases, or boosting economic growth dramatically; most economists agree a combination of spending reductions and revenue increases is needed to make the debt sustainable, as growing out of it alone is unlikely given current spending demands.
 

Is the US in trouble financially?

Yes, the U.S. faces significant, long-term financial challenges due to its mounting national debt and large deficits, with experts warning of an unsustainable path that could strain economic growth, increase borrowing costs, and risk fiscal crises if not addressed, though demand for U.S. debt remains strong currently. Key issues include debt exceeding GDP, rising interest payments, and projections for continued rapid debt growth, prompting warnings from the GAO, IMF, and Treasury. 

When Does US Debt Become Genuinely Bad? | WSJ

What has Joe Biden done to the economy?

President Biden's economic policies focused on "Bidenomics," aiming for "middle-out, bottom-up" growth through major legislation like the Inflation Reduction Act (IRA) and CHIPS and Science Act, leading to significant job creation, a strong labor market (low unemployment for diverse groups), reshoring of manufacturing, and increased investment in clean energy, though these policies coincided with high initial inflation and rising costs for some goods, contrasting with strong GDP growth and wealth gains for many households. 

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

What happens if the USA can't pay its debt?

A default on all outstanding U.S. Treasuries would almost surely precipitate a global financial crisis. Further, because about 70% of the debt is held by Americans, most of the savings from foregone interest payments would be at the expense of U.S. investors.

What country is deepest in debt?

The country with the worst debt depends on how you measure it, but Sudan often leads in debt-to-GDP ratio (around 250%+) due to conflict, while Japan has the highest among developed nations (over 230%), and the United States holds the largest absolute debt (trillions). Other nations with very high debt-to-GDP include Singapore, Greece, and Italy, with emerging economies like Sri Lanka, Laos, and Pakistan also facing severe distress. 

Is Trump going to forgive tax debt?

There is no IRS forgiveness plan officially introduced by Trump in 2025. While some campaign proposals have discussed tax simplification or reduced rates, they do not include debt cancellation for individuals with unpaid taxes.

Which country will overtake America?

China will overtake the U.S. to become the world's largest economy by 2020, according to Standard Chartered Plc. “We believe that the world is in a 'super- cycle' of sustained high growth,” economists led by Gerard Lyons said in a report published today.

Is American quality of life declining?

Yes, evidence suggests the U.S. standard of living is declining for many, marked by stagnant real wages for lower/middle earners, soaring costs for housing, healthcare, and education, and decreased overall quality-of-life rankings, even as GDP grows, creating a widening gap between earnings and basic needs. While some metrics like Human Development Index (HDI) remain high, significant portions of the population struggle to afford essentials, indicating a real-terms decline in well-being for a large segment of Americans. 

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

Who was the last president to balance the US budget?

The last president to oversee a balanced federal budget was Bill Clinton, whose administration achieved budget surpluses for four consecutive years, from fiscal years 1998 to 2001, marking the first sustained period of budget balance in decades. This rare feat was due to a combination of economic growth, spending cuts, and tax increases, and it ended with the start of the new millennium, after which deficits returned. 

What would happen if the US paid off all its debt?

If the U.S. paid off all its debt, it would trigger an economic crisis by eliminating safe investment options (Treasury bonds), causing a massive cash glut, crashing interest rates, disrupting monetary policy (Federal Reserve operations), forcing cuts in government services/spending, and potentially leading to a depression as the economy would lose its primary safe asset, disrupting the entire global financial system that relies on U.S. debt. The process itself, whether through extreme taxes or printing money, would likely cause hyperinflation or deep recession, while the end result removes a critical benchmark for the global economy.
 

Why doesn't China call in US debt?

Treasury bonds are freely traded financial instruments, China cannot —nor can any other creditor—simply demand a repayment at their will. Additionally, because the U.S. controls its own currency, it has the ability to manage its debt through fiscal and monetary policies.

Which country has zero debt?

As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.

Can the USA get out of debt?

There are a number of methods to reduce the U.S. national debt that go beyond raising taxes and cutting discretionary spending. One of the most controversial is to open the nation's borders to more immigration, kick-starting entrepreneurship and consumption.

Is China's debt higher than the US?

Yes, China's total debt (government, corporate, household) is significantly higher than the U.S. when measured relative to its economy (Debt-to-GDP ratio), exceeding 300% of GDP and surpassing U.S. levels, though the U.S. still holds a larger absolute amount of government debt. While the U.S. government's debt pile is larger in dollars (around $38T+), China's debt-to-GDP ratio has grown faster and is considered riskier because China lacks the U.S.'s developed financial system and reserve currency status, making its situation potentially worse than America's debt problem. 

Is it possible to live in America without debt?

Federal Reserve data shows that about 23% of Americans have no debt. Striving to live without debt is admirable, but having debt isn't automatically bad. For example, a mortgage is a significant debt, but you're building equity in an asset that's likely to appreciate over time.

What is the safest place for money if the US defaults on debt?

If the US defaults. there is no safe place to put your US Dollars. The alternatives are commodities (gold,silver,collectibles) or possibly foreign currencies (euro,pound,etc). But really, if the US defaults the best assets you'll have would be canned goods and ammunition.

Is US debt unsustainable?

Yes, most economists and government bodies (like the CBO, GAO, Treasury) agree the U.S. national debt path is currently unsustainable, meaning debt grows faster than the economy (GDP), driven by deficits, mandatory spending (Medicare/Social Security), and rising interest costs, risking future financial instability, although some factors like low rates help temporarily. Experts point to high debt-to-GDP ratios, exceeding WWII levels, and projected increases to over 100% and beyond, indicating a need for major policy changes to achieve long-term fiscal health. 

What is the credit card limit for $70,000 salary?

The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.

Which gender has more debt?

Men have 2 percent more credit card debt than women. Men have 9.7 percent more mortgage debt than women. Men have 20 percent more personal loan debt than women. Women have 2.7 percent more student loan debt than men.

Is being debt-free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages.