Basic Facts about U.S. Government Debt: Cato

10 July 2023

The U.S. government budget is characterized by vast sums that are difficult to comprehend. Translating these figures into terms that non-experts can understand reveals the imbalance and urgency of the situation. Government debt is growing rapidly, surpassing the value of goods and services produced in a year. Each American household currently owes $194,000, a figure that would rise to $696,000 in 30 years. Excessive government borrowing leads to negative consequences such as lower economic growth, reduced incomes, and higher interest rates. If the debt spirals out of control, a fiscal crisis could occur, causing severe economic turmoil. The government budget is irresponsibly unbalanced, with spending exceeding income. If an average family acted similarly, they would spend $100,000 a year while earning only $78,000, resulting in excessive borrowing. In 2022, the government spent $6.3 trillion, collected $4.9 trillion in taxes, and added $1.4 trillion to the existing $22.3 trillion public debt. The majority of government spending occurs automatically, with only a small portion subject to congressional approval.

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