The U.S. national debt is the amount of money owed by the United States federal government. This does not include the money owed by states, corporations, or individuals. The national debt is over 8.1 trillion dollars. That puts each citizens share of that debt to over $27,000. The National Debt has continued to increase an average of $2.28 billion per day since September 30, 2005. U.S. Public debt is more than ten times the amount of United States currency in circulation as of 2005, estimated to be $730 billion.
So, how does this affect us as individuals?
Approximately 18 cents out of every dollar of total tax revenue collected is immediately used merely to pay the burgeoning interest on the Federal debt. Thus, absolutely no governmental services or benefits are delivered in return for 18 percent (nearly 1 out of every 5 dollars) of our total Federal tax bill.
The interest we all must pay on the national debt represents a “debt tax” that can never be repealed as long as the debt remains at its current levels. The debt tax will consume larger portions of our money as government spending continues to increase.
These are substantial funds that could most prudently be re-invested in the growth of our own businesses, but must be shoveled out instead simply to service the interest payments to the world of strangers who hold these obligations of the Treasury of the United States.
While some of the recipients of these interest payments may recycle these funds into the purchase of domestic goods and services, much of the Federal debt is held by foreigners.
The national debt drains substantial funds out of the business that could otherwise be invested in job creation and entrepreneurial expansion. It also drains substantial funds out of consumers’ pockets that could otherwise be available for the acquisition of goods and services. And this burden inevitably impedes the growth and prosperity of the economy.