How much would everyone have to pay to pay off national debt?
* As of March 1, 2024, the U.S. Treasury's official figure for the debt of the federal government is $34.4 trillion, or more precisely, $34,393,262,399,002. [9] This equates to: $102,326 for every person living in the U.S.[10] $261,677 for every household in the U.S.[11]
To pay off the debt, each American would have to contribute nearly $100,000.
It ultimately comes down to the U.S. taxpayers. That means in order to pay it off, or at least make a larger dent in the debt, the federal government would have to raise taxes and cut spending. "The problem is way bigger than if we just cut foreign aid," said Phelan.
The Congressional Budget Office (CBO) projects that interest payments will total $870 billion in fiscal year 2024 and rise rapidly throughout the next decade — climbing from $951 billion in 2025 to $1.6 trillion in 2034. In total, net interest payments will total $12.4 trillion over the next decade.
The public owes 74 percent of the current federal debt. Intragovernmental debt accounts for 26 percent or $5.9 trillion. The public includes foreign investors and foreign governments. These two groups account for 30 percent of the debt.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.
| Country/territory | US foreign-owned debt (January 2023) |
|---|---|
| Japan | $1,104,400,000,000 |
| China | $859,400,000,000 |
| United Kingdom | $668,300,000,000 |
| Belgium | $331,100,000,000 |
Reducing the debt will require Congress to make politically difficult decisions to either curb spending, raise taxes, or both. Other experts say the United States can safely afford to continue borrowing at present levels because it pays relatively little interest due to its unique position in the global economy.
Answer and Explanation: If the U.S. was to pay off their debt ultimately, there is not much that would happen. Paying off the debt implies that the government will now focus on using the revenue collected primarily from taxes to fund its activities.
China owes the United States $1.3 trillion, which is the most debt out of all the countries that are its debtors. Japan was the primary debt holder until 2008, but now comes in second place, with $1.2 trillion. Other countries with outstanding U.S. debt include Russia, India and South Korea.
Why is the US in so much debt?
Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt.
- Japan. Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP. ...
- United States. ...
- China. ...
- Russia.
In December 2021, debt held by the public was estimated at 96.19% of GDP, and approximately 33% of this public debt was owned by foreigners (government and private).
1) Switzerland
It is no surprise to see Switzerland on this list. Switzerland is a country that, in practically all economic and social metrics, is an example to follow. With a population of almost 9 million people, Switzerland has no natural resources of its own, no access to the sea, and virtually no public debt.
There are two kinds of national debt: intragovernmental and public. Intragovernmental is debt held by the Federal Reserve and Social Security and other government agencies. Public debt is held by the public: individual investors, institutions, foreign governments.
US Treasurys Owned by China, in USD Billions
As of Oct. 2022, China owns $769.6 billion of the total $7,565 billion U.S. national debt.
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Men have 20% more personal loan debt than women. Men have 16.3% more auto loan debt than women. Men have 9.7% more mortgage debt than women. Women have 2.7% more student loan debt than men.
| Age Group | Median Credit Card Debt | Percentage Who Carry Debt |
|---|---|---|
| 35-44 | $2,600 | 51% |
| 45-54 | $3,200 | 52% |
| 55-64 | $3,000 | 47% |
| 65-74 | $2,900 | 41% |
If China “dumped” USA treasuries, they would take a serious monetary loss. The price of the treasuries would drop, effective raising the return for those who bought the bonds.
Who brought the US debt to 0?
On January 8, 1835, President Andrew Jackson achieves his goal of entirely paying off the United States' national debt. It was the only time in U.S. history that the national debt stood at zero, and it precipitated one of the worst financial crises in American history.
Russia National Government Debt reached 287.8 USD bn in Jan 2024, compared with 285.4 USD bn in the previous month.
The main reason Peterson and other economists are worried about the national debt is the amount of interest the government has to pay on it. As of November, servicing the national debt ate up 16% of federal spending, about the same as the government spends on defense.
- 14 % National Defense.
- 13 % Net Interest.
- 12 % Medicare.
- 10 % Income Security.
- 5 % Veterans Benefits and Services.
- 3 % Education, Training, Employment, and Social Services.
- 3 % Commerce and Housing Credit.
- 2 % Transportation.
| Generation | Average credit card debt |
|---|---|
| Baby boomers (58–76) | $6,245 |
| Generation X (42–57) | $8,134 |
| Millennials (26–41) | $5,649 |
| Generation Z (19–25) | $2,854 |
