In 2022, the gross federal debt in the United States amounted to around 92,528 U.S. dollars per capita. This is a moderate increase from the previous year, when the per capita national debt amounted to about 85,552 U.S. dollars.
The total debt accrued by the U.S. annually can be accessed here.
Federal debt of the United States
The level of national debt held by the United States government has risen sharply in the years following the Great Recession. Federal debt is the amount of debt the federal government owes to creditors who hold assets in the form of debt securities. As with individuals and consumers, there is a common consensus among economists that holding debt is not necessarily problematic for government so long as the public debt is held at a sustainable level. Although there is no agreed upon ratio of debt to gross domestic product, the increasing debt held by the Federal Reserve has become a major part of the political discourse in the United States.
Politics and the national debt
In recent years, debate over the debt ceiling has been of concern to domestic politicians, the owners of federal debt, and global economy as a whole. The debt ceiling is a legislated maximum amount that national debt can reach intended to impose a degree of fiscal prudence on incumbent governments. However, as national debt has grown the debt ceiling has been reached, thus forcing legislative action by Congress. In both 2011 and 2013, new legislation was passed by Congress allowing the debt ceiling to be raised. The Budget Control Act of 2011 and the No Budget, No Pay Act of 2013 successively allowed the government to avoid defaulting on national debt and therefore avert a potential economic crisis.
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Now, let's delve into the concepts presented in the article about the gross federal debt in the United States in 2022:
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Gross Federal Debt Per Capita:
- The article mentions that in 2022, the gross federal debt in the United States amounted to approximately 92,528 U.S. dollars per capita. This figure represents the total federal debt divided by the population, providing a per-person measure of the debt burden.
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Yearly Increase in Per Capita National Debt:
- There was a moderate increase from the previous year, where the per capita national debt was around 85,552 U.S. dollars. This indicates a trend of growing national debt on a per-person basis.
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Total Annual U.S. Debt:
- The article refers to the ability to access the total debt accrued by the U.S. annually. This likely includes a comprehensive view of all types of debt incurred by the federal government over the course of the year.
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Federal Debt and Its Rise Post-Great Recession:
- The national debt held by the U.S. government has risen significantly in the years following the Great Recession. This is a reflection of the economic challenges and fiscal measures taken during that period.
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Debt Securities:
- Federal debt is described as the amount of debt owed to creditors who hold assets in the form of debt securities. Debt securities are financial instruments that represent a creditor's claim on the government and provide a way for the government to raise capital.
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Sustainability of Public Debt:
- Economists generally agree that holding debt is not problematic for the government as long as the public debt is maintained at a sustainable level. The article alludes to the importance of managing the debt-to-GDP ratio to ensure fiscal responsibility.
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Debt Ceiling and Fiscal Prudence:
- The article introduces the concept of the debt ceiling, which is a legislated maximum amount that national debt can reach. This is designed to impose fiscal prudence on incumbent governments and prevent excessive borrowing.
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Political Discourse and Federal Reserve's Role:
- The increasing debt held by the Federal Reserve has become a significant part of the political discourse in the United States. This suggests that the role of the Federal Reserve in managing and influencing the national debt is a topic of debate and discussion.
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Debt Ceiling Debates and Legislative Actions:
- The article highlights recent years' debates over the debt ceiling, expressing concerns among domestic politicians, federal debt owners, and the global economy. The debt ceiling has been reached, necessitating legislative action by Congress to raise it and avoid default on national debt, as seen in the cases of the Budget Control Act of 2011 and the No Budget, No Pay Act of 2013.
Understanding these concepts provides valuable insights into the economic landscape, fiscal challenges, and policy measures related to the U.S. federal debt. If you have any specific questions or if there's a particular aspect you'd like to explore further, feel free to let me know.
