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National DebtThe national debt is the total amount of money the federal government has borrowed, plus interest. This borrowed money supplements taxpayer dollars to fund government operations, from national defense to welfare programs.
The US has accrued debt since its infancy. Only seven years into nationhood, debts from the Revolutionary War totaled $43M.
Where and how much the nation should cut spending in order to rein in debt is an ongoing political debate. In recent years, the wars in Afghanistan and Iraq, the 2008 recession, and the COVID-19 pandemic significantly increased the national debt. An aging population coupled with the high price of healthcare—plus global threats like pandemics, wars, and natural disasters—are all contributing to the national debt’s rise.Explore National Debt
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When the US hits the debt ceiling, the Treasury uses emergency measures to avoid defaultAfter the US reached its debt ceiling in January 2023, the Treasury deployed "extraordinary measures" to keep paying obligations. This article explains the steps, how they work, and why they last only for a limited time. (Some readers may experience a paywall.) VoxThe debt ceiling is a legal cap on how much money the US government can borrowSet by Congress, the debt ceiling limits total federal borrowing. This guide explains why the cap was created, how it has evolved, and why raising or suspending it has become a recurring political flash point. TIMEThe debt ceiling is the threshold Congress sets for federal borrowingIf the US reaches this limit and Congress doesn’t pass a bill to raise it, the government cannot repay its debts. Suddenly, investors would lose assurance that the Treasury would make good on its securities, which have long been considered the safest type of investment. The Wall Street JournalThe federal debt ceiling 101The debt ceiling periodically takes center stage as Congress debates whether to increase or suspend this self-imposed limit on its borrowing authority. Learn the basics on this crucial feature of US fiscal policy with this Q&A. Committee for a Responsible Federal BudgetThe national debt is the total amount the US government owes its creditorsThis US Treasury page explains what the national debt is, how it accumulates from annual deficits, and why rising debt can affect interest costs, fiscal flexibility, and long-term economic stability. Treasury.govThe US is one of two countries that abide by a predetermined borrowing limitWhen the Treasury hits this “debt ceiling,” Congress has to pass a bill increasing the borrowing threshold. Failure to do so may lead to a financial crisis. VoxThe trillion-dollar coin is a proposed platinum coin with a face value of $1T, which could be used to reduce the national debtThis conceptual strategy was first proposed in 2011 as a potential alternative to raising the US debt ceiling. Although there were several high-profile proponents of the idea, it was eventually rejected in 2013 by Treasury Department and Federal Reserve officials. Investopedia
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