$40 trillion.
101% of GDP on debt held by the public.
But that shocking number is only one part of the issue here.
The other part is that the borrowing has become compulsory.
About 75% of federal spending is now effectively automatic.
Around 60% goes to mandatory programs, and interest on the debt takes the total to about $5.6 trillion.
That's roughly equal to everything the federal government expects to collect in revenue.
Social Security, Medicare, Medicaid, and the interest bill consume essentially every tax dollar collected.
which means defense and every other discretionary expense is essentially funded by borrowing.
For context, net interest is now crossing $1 trillion this fiscal year, about 3.3% of GDP, and it's the second largest line in the entire budget behind only Social Security.
Yes, even bigger than defense.
Meanwhile, think about the everyday person.
Think about a household that isn't buying anything.
No new car, no holiday, no extension.
They're just refinancing the same mortgage every single year at triple the rate that they originally locked in.
Their spending hasn't changed at all, and their bills keep going up anyway.
That's the United States right now.
The deficit has turned into an unavoidable maintenance bill.
$40 trillion.
101% of GDP on debt held by the public.
But that shocking number is only one part of the issue here.
The other part is that the borrowing has become compulsory.
About 75% of federal spending is now effectively automatic.
Around 60% goes to mandatory programs, and interest on the debt takes the total to about $5.6 trillion.
That's roughly equal to everything the federal government expects to collect in revenue.
Social Security, Medicare, Medicaid, and the interest bill consume essentially every tax dollar collected.
which means defense and every other discretionary expense is essentially funded by borrowing.
For context, net interest is now crossing $1 trillion this fiscal year, about 3.3% of GDP, and it's the second largest line in the entire budget behind only Social Security.
Yes, even bigger than defense.
Meanwhile, think about the everyday person.
Think about a household that isn't buying anything.
No new car, no holiday, no extension.
They're just refinancing the same mortgage every single year at triple the rate that they originally locked in.
Their spending hasn't changed at all, and their bills keep going up anyway.
That's the United States right now.
The deficit has turned into an unavoidable maintenance bill.
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