The national debt of the United States is the total amount of money that the U.S. government owes to individuals, businesses, and other countries. The debt is accumulated through borrowing to cover budget deficits, which occur when the government spends more money than it takes in through taxation. The national debt is tracked by year to monitor its growth and impact on the economy.
Understanding the national debt is important for several reasons. First, it provides insight into the government’s fiscal health and its ability to meet its financial obligations. Second, the debt can have a significant impact on interest rates, inflation, and economic growth. Third, the debt affects the distribution of wealth and income, as it is often financed through borrowing from wealthy individuals and institutions.