By 2025, the interest payment on our national debt is projected to surpass military spending. Government estimates expect interest payments will surpass Medicaid funding this year. Since President Trump suspended the borrowing limit, a question remains: how concerned should we be? The U.S. has been in debt for most of its history. However, the national debt is ascending to a level not seen since WWII. Total government debt is an estimated: 23,201,228,674,969 ($70,486 per every living American). The $23 trillion is the most owed by any nation. However, when contrasted with the size of our economy via the Debt-to-GDP ratio, it doesn’t even rank in the top 25.
The U.S. Debt-to-GDP ratio is now 105%. Japan and Greece have the most elevated Debt-to-GDP ratios, at 236% and 182%, respectively. The last time our Debt-to-GDP ratio was over 100% was the end of WWII (1 18.4%). A robust economy and the rebuilding of war-torn Europe shrunk the Debt-to-GDP ratio. By 1980, it was 30.4%. While economists debate whether the size of the obligation is bad for the economy, interest on the debt—will eventually take away funding.