End Of Fiscal Year 2018
This entry reflects the U.S. Treasury Departments official end-of-year spending, revenue, and deficit figures for Fiscal Year 2018, as released in its Final Monthly Treasury Statement for Fiscal Year 2018.
The total deficit for FY 2018 is $779 billion, with total spending clocking in at $4.1 trillion and total revenue at $3.3 trillion. The deficit grew by 17 percent compared to FY 2017 and is the highest federal deficit in six years . While spending grew by about 3 percent in FY 2018, revenue grew by less than 1 percent . Disturbingly, federal interest payments on the debt spiked to $372 billion up 20 percent from FY 2017 reflecting the largest year-over-year increase in over a decade .
What Is National Debt
National debt denotes the outstanding obligations of a country. Such obligations may also be called government debt, federal debt, or public debt.
The national debt of the United States is what the federal government owes creditorsincluding debt held by the public and federal government trust funds. U.S. national debt totaled $30.5 trillion as of July 15, 2022.
Countries That Have Bought The Most Us Debt Over The Last 15 Years
Thirty-three percent of U.S. debt is foreign-owned, with China and Japan topping the list of owners. Both have more than $1 trillion, though China owns less than it did in 2013, when it accounted for nearly 8% of all U.S. debt, which is seen as a safe investment.
The amount of foreign-owned U.S. debt grew by $1 trillion to a total of $7 trillion between 2016 and 2020, according to a Congressional Research Service report that was updated in July 2021. Foreign holdings had leveled off, then increased again in 2019 and 2020, but because U.S. total debt grew faster, the share owned by foreigners has declined.
The U.S. is buying more imports than it sells exports and runs a trade deficit. But federal borrowing might not be bad for the country, if, for example, the borrowing sparks an economic recovery, the Congressional Research Service points out.
To find the countries that have bought the most U.S. debt over the last 15 years, Stacker analyzed April 2021 data from the Treasury Department. Countries were included only if they were considered major foreign holders of U.S. treasury securities in 2006 and 2021. Countries were ranked by the absolute increase in dollars from April 2006 to April 2021. Read on to see which countries have bought the most debt in the past 15 years.
– 15-year total US debt holdings increase: $30.8 billion – April 2006 US debt held: $47 billion- April 2021 US debt held: $77.8 billion
The United States-Mexico-Canada Agreement took effect July 1, 2020.
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Global Recession And Collapse Of Wall Street
Starting in late 2008, the U.S. went into the deepest economic downturn the country had seen since the Great Depression. Investment banks collapsed due to the subprime mortgage crisis. President Barack Obama began his first term in January of 2009. By the end of the year, there were signs of recovery, but a full return to a healthy economy wouldn’t come for several years.
National Debt: $11.910 trillion
Why Is The Debt So High
As of March 2022, the U.S.s national debt stands at $30.2 trillion.Factors that contribute to the U.S.s high national debt include continued federal budget deficits, the government borrowing from the Social Security Trust Fund, the steady Treasury lending from other countries, low interest rates that promote increased investment, and raised debt ceilings.
Other factors that contribute to the high national debt include the inefficient healthcare system and the changing demographics of the country. Though the U.S. spends more than other countries on healthcare, health outcomes are not much better. In addition, the Baby Boomer generation are now becoming elders and seeking benefits and increased healthcare services. The government will spend, sometimes inefficiently, more on programs and services for the longer living older generations.
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Our $23 Trillion National Debt: An Inter
While Americans may not personally feel the effects of our mounting debt today, we eventually will. The good news is that policy solutions can help address the issue before the bill comes due.
A founding pillar of American strength is our enduring commitment to building a bright future for the next generation. The very concept of the American Dream is rooted in this ideal.
When it comes to our nations finances, were falling short. Our federal budget will run a deficit of more than $1 trillion this year, and the national debt exceeds $23 trillion. Worse yet, our deficits and debt are projected to increase year after year, as far as the eye can see. Americas fiscal outlook is the definition of unsustainable.
While many Americans may not personally feel the effects of our mounting debt right now, the bill will ultimately come due, with interest. Running huge budget deficits damages our economy over time and eventually will diminish our leadership role in the world.
In fundamental terms, fiscal irresponsibility represents an inter-generational injustice, and a moral failure. Piling on trillions in red ink is making a choice to benefit ourselves today, at the expense of our own children and grandchildren.
In fundamental terms, fiscal irresponsibility represents an inter-generational injustice, and a moral failure. Piling on trillions in red ink is making a choice to benefit ourselves today, at the expense of our own children and grandchildren.
Us National Debt Statistics
- The current US national debt is $26,498,433,296,171 TreasureDirect – The debt to the Penny and Who Holds It
- Thatâs an increase of $3,326,434,162,341 since January 2nd 2020
- In 2020, national debt has increased $14,850,152,510 per day or $1.031 million per minute
- By December 31st 2020, the national debt is currently set to increase a further $2.15 trillion to $28,651,705,410,186
- The national debt per citizen equals $80,274 per person
- Between 2010 and 2020, national debt increased $9,157,778,722,542, an increase of 71.9%
- Since Jan 12nd 2020, national debt has increased more than $2.9 trillion
- National debt has increased for the last 64 years consecutively – the last time it fell was 1956 – 57
- The most expensive decade in American history was the 1860s, where national debt increased 3,726% from $64.8 million to $2.48 billion.
- 1836 – 37 saw the fastest ever increase in US national debt, soaring 882%. This was even quicker than the second fastest debt increase in history, 1835 – 1836, when it rose 798%
- National debt was almost eradicated in in the 1830s, dropping 99.4% during Andrew Johnsonâs Presidency
The U.S. national debt gets a lot of attention from the media and politicians. Still, few Americans truly understand what it means.
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Tracking The Federal Deficit: September 2021
The federal deficit for September 2021 was $59 billion, approximately $65 billion less than the deficit for September 2020. This deficit was the difference between revenues of $460 billion and spending of $519 billion. Although individual and corporate tax payments in September typically produce a large surplus, COVID-19 relief spending eclipsed them and led to a September deficit for the second year in a row.
Revenues increased by $87 billion in relation to the same month last year. The increase was mostly caused by a 23% rise in income and payroll taxes and a 71% increase in corporate income tax receipts.
Spending rose $22 billion year-over-year. Notably, spending by the Department of Education was 107% higher than in September 2020. An upward revision of $95 billion to the departments estimated net subsidy costs of loans and loan guarantees was driven partially by pandemic-related causesincluding the extension of pauses on the payment of loan principal and interest and the collection of loans in defaultand partially by re-estimates of how much the federal government would be repaid on its outstanding portfolio. Spending on refundable tax credits increased $21 billion year-over-year primarily due to the monthly advanced Child Tax Credit payments authorized by the American Rescue Plan earlier this year.
Average Debt To Income Ratios
Debt to income ratio is a key indicator of financial health. Its determined by taking you monthly expenditures and dividing that number by your monthly income.
For instance, if your bills amount to $5,000 a month and you make $7,500 a month, your DTI is 66%. It also means you are dire need of financial overhaul.
The maximum DTI you can have to qualify for a mortgage is usually 43%. Most financial advisors recommend keeping your DTI at 30% or lower.
Overall, DTIs have risen over the years. A 2018 Federal Reserve report showed a slow but steady rise from 1980s, then a sharp increase during the housing boom of the early 2000s.
It dropped with financial crisis of 2008, which indicated many households cut consumption or defaulted on loans.
The median household income hit $79,900 in the first quarter of 2021, according to the U.S. Department of Housing and Urban Development. Thats almost $35,000 more than it was in 2000.
But the typical American household now carries an average debt of $145,000. The median debt was only $50,971 in 2000.
Year-to-year DTI statistics are hard to come by, but given the rise of debt versus the rise in income, its apparent that Americans in all demographic groups have higher debt-to-income ratios.
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Breakup Of Northern Securities
In 1902, President Theodore Roosevelt ordered the Justice Department to break up the Northern Securities Company. This holding company controlled the main railroad lines from Chicago to the Pacific Northwest.
Roosevelt took the position that the company was an illegal monopoly. The company appealed the move, and the case went all the way to the Supreme Court, which ruled in favor of the federal government.
National debt: $2.3 billion
Raising Reserve Requirements And Full Reserve Banking
Two economists, Jaromir Benes and Michael Kumhof, working for the International Monetary Fund, published a working paper called The Chicago Plan Revisited suggesting that the debt could be eliminated by raising bank reserve requirements and converting from fractional-reserve banking to full-reserve banking. Economists at the Paris School of Economics have commented on the plan, stating that it is already the status quo for coinage currency, and a Norges Bank economist has examined the proposal in the context of considering the finance industry as part of the real economy. A Centre for Economic Policy Research paper agrees with the conclusion that “no real liability is created by new fiat money creation and therefore public debt does not rise as a result.”
The debt ceiling is a legislative mechanism to limit the amount of national debt that can be issued by the Treasury. In effect, it restrains the Treasury from paying for expenditures after the limit has been reached, even if the expenditures have already been approved and have been appropriated. If this situation were to occur, it is unclear whether Treasury would be able to prioritize payments on debt to avoid a default on its debt obligations, but it would have to default on some of its non-debt obligations.
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The Federal Debt Ceiling
The federal debt ceiling is the legal amount of federal debt that the government can accumulate or borrow to fund its programs and pay for fees such as the national debt interest. Since its creation through the Second Liberty Bond Act in 1917, the debt ceiling has grown about 100 times. These instances have included permanent raises, temporary extensions, and revisions to what the debt limit can be defined as. When the debt ceiling isnt raised, the federal government is unable to issue Treasury bills and must rely solely on tax revenues to pay for its programs this has occurred 7 times since 2013.
Tracking The Federal Deficit: July 2021
The Congressional Budget Office estimates that the federal government ran a deficit of $301 billion in July, the tenth month of fiscal year 2021. Because August 1 fell on a weekend in both 2020 and 2021, certain federal programs that typically pay out large sums on the first of the month did so twice in July. If not for these timing shifts, the deficit would have been $60 billion less last month. Julys deficit was the difference between $261 billion in revenue and $562 billion in spending. Monthly receipts dropped 54% compared to last July due to 2021s return to the regular April and June tax filing deadlines for individual and corporate tax payments.
So far this fiscal year, the federal government has run a cumulative deficit of $2.5 trillion, the difference between $3.3 trillion in revenue and $5.9 trillion in spending. This deficit is 10% lower than over the same period in FY2020, but nearly triple the FY2019 deficit .
Analysis of Notable Trends: Fiscal patterns over the past month continue to reflect the federal governments response to the COVID-19 pandemic, as well as the developing economic recovery.
Growth in federal revenues remains robust, increasing 17% compared to the same 10-month period in FY2020. This increase is indicative of a strengthening economy, with a steady inflow of individual income and payroll taxes from higher total wages and salaries, and corporate taxes from larger corporate profits, the latter of which increased 76% year-over-year.
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Tracking The Federal Deficit: June 2020
The Congressional Budget Office reported that the federal government ran a deficit of $864 billion in June, the ninth month of fiscal year 2020. This monthly deficit is more than 100 times larger than last Junes deficit of $8 billion. This difference came from a sizable drop in revenues, which were down 28% from last June , and especially from a massive increase in outlays, up 223% from last June . The budget deficit so far this fiscal year has surged to $2.7 trillion, $2 trillion more than at the same point last year. As exemplified by June, the cumulative difference stems from a drop in revenues13% lower than at the same point last yearand a much bigger leap in outlays49% higher than at this time last year.
The drop in revenue between last June and this one was due almost entirely to the administration delaying the deadline for quarterly tax payments from June 15 to July 15. Monthly revenue was down $93 billion compared to a year ago, of which $43 billion came from delaying corporate tax payments while $42 billion came from delaying individual and payroll tax payments. CBO expects most of this delayed revenue to eventually be collected, although some will be lost as businesses fail before the new payment deadlines.
Tracking The Federal Deficit: January 2022
The Congressional Budget Office estimates that the federal government ran a surplus of $119 billion in January 2022, the fourth month of fiscal year 2022. Januarys surplus was the first recorded since September 2019, and it was the difference between $467 billion in revenues and $348 billion in spending. In comparison, last January, the federal government ran a $163 billion deficit. Additionally, both this year and last year, the timing of the New Years Day federal holiday shifted some payments that would have normally been due at the beginning of January into December. In the absence of these timing shifts, the federal government would have run a smaller monthly surplus in January 2022 of $95 billion.
Analysis of notable trends: In the first four months of FY2022, the federal government ran a deficit of $259 billion, $477 billion less than at this point in FY2021. It is noteworthy, however, that the cumulative deficit for FY2022 thus far compares favorably to that of FY2020 , prior to the onset of COVID-19.
Notably, net interest on the public debt rose 22% to $140 billion for the fiscal year to date, primarily reflecting the impact of rising inflation on adjustments to the principal of inflation-protected securities.
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What Is The Composition Of Intragovernmental Debt
Most of the $6.5 trillion of intragovernmental debt is held in government trust funds. About $2.8 trillion is held in the Social Security Old Age and Survivors Insurance trust fund in the form of special issue securities that are expected to be redeemed within the next 15 years or so. A majority of the remaining amount comes from federal civilian and military retirement trust funds, which are projected to continue accumulating assets in order to notionally fund future retirement costs. Smaller amounts come from the Department of Defenses Medicare Eligible Retiree Fund, Medicare’s Hospital Insurance and Supplemental Medical Insurance trust funds, the Highway Trust Fund, the Deposit Insurance Fund, and the Social Security Disability Insurance trust fund, among other sources.
Hurricanes Katrina And Rita Growth Of China And India
In August of 2005, Hurricane Katrina hit the Gulf Coast, nearly destroying New Orleans and becoming one of the largest natural disasters in U.S. history. Hurricane Rita followed soon after.
The two storms caused more than $2 billion in damage, destroyed 275,000 homes, eliminated 400,000 jobs, killed over 1,000 people, and displaced hundreds of thousands of Americans.
This was also the year that China and India rose as world financial powers. For years, the U.S. had been outsourcing work to these countries because they offered cheap labor. Eventually, the strategy shifted to tapping these workforces for highly educated and skilled technical talent.
National Debt: $7.933 trillion
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Great Depression And Stock Market Crash
People started investing heavily in the stock market in 1920 unaware that Black Tuesday would dawn with an $8 billion loss in market value when the stock market crashed on October 29, 1929. The United States relied on the gold standard and raised inflation, rather than lowering rates to ease the burden of inflation.
During the following era, income inequality between classes grew. More than 25 percent of the workforce was unemployed, people made purchases on credit and were forced into foreclosures and repossessions.
President Franklin D. Roosevelt developed programs for unemployment pay and social security pensions, along with providing assistance to labor unions. Although Roosevelt addressed many problems in the U.S. economy, the funding for his programs grew the national debt to $33 billion.
