If You Are Reading This, You Owe About $230,000.00 Towards Our ~$37 trillion National Debt
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
Click below if you prefer the podcast version: You Charged $230,000.00 To Our Credit Card! Have You Lost Your $#%$^ Mind!
Brother, can you spare a few dimes, say 2,300,000?
The National Debt
National Debt is what we have borrowed and owe our various lenders {foreign governments, domestic/foreign organizations, and individuals}. As a nation, we borrow money by issuing bonds that investors purchase. Our debt grows when the government spends more than it brings in through taxes and other revenues. This is similar to borrowing more on your credit cards than you pay off.
As of 2025, the United States government owes a mind-boggling ~$37 TRILLION!
Per Household and Taxpayer Debt Calculation
- National debt: $37 trillion
- Number of Households: ~130 million
- Per Household Debt: $284,615.00 if the national debt were shared equally among all households.
- With approximately 161 million taxpayers
- Per Taxpayer Debt: ~$229,181.00. [What You Owe!]
I was trying to explain how much debt U.S. taxpayers owe to a young taxpayer. I gave up!
If You Wrote a New Netflix Show About Our Debt, What Would You Call It?
How about “No Survivors – The Bankrupt Edition!
The national debt today sounds less like a number and more like a horror reality show:
Consequences of High National Debt
- Higher Taxes: Sooner or later, the Federal government will raise taxes to reduce our deficits. This means less take-home pay on essential things like a place to live and food.
- Reduced Government Services: Vital programs will face cuts or reduced funding. This could mean larger class sizes or fewer school resources for families with children, and it may result in a reduction in social security payments.
- Crowding Out Investment: Interest rates will increase when the government borrows heavily. Higher interest rates mean it becomes more expensive for individuals and businesses to borrow money. Companies struggling to afford loans will reduce expansions and R&D, leading to fewer jobs and slower economic growth. This will result in fewer jobs and even less tax revenue.
- Inflation Risks: A high national Debt can lead to inflation if the government prints more money to pay off debts. Inflation means that the prices of goods and services rise, eroding the value of money in your pocket. For example, if the government prints money to reduce the debt, you could see prices for groceries or gas increase. What costs $100 today might cost $200.00 in just a few years.
- Intergenerational Burden: A large national debt is a burden that affects current taxpayers and future generations. Children born today may grow up with the reality of paying for this debt through higher taxes or limited access to essential services.
What Can Be Done?
Unlike an ostrich that does NOT bury its head in the sand, our DC politicians must be suffocating! They neither have the brains or the cojones to solve this problem.
What could be done if we elected economically literate Congressmen and a President? There are steps we can take to mitigate its impact:
- Pray!
- Stop electing “The Tin Man” like brainless politicians and crooks. And while you are at it, enough with these octogenarians!
- Drastically eliminate Federal regulations. Minimum target – 50% reduction. Too many are cumbersome, providing zero value but slowing investments.
- Budget Cuts and Spending Reform
- Improve the efficiency of government operations, such as the Post Office, IRS, Social Security, etc. Increasing efficiency reduces costs.
- Tax Reform: Streamlining the tax system to make it fairer could improve revenue without overburdening taxpayers.
- Incentivizing Growth: Fostering an environment for businesses to grow.
- Attract more businesses to the U.S., increasing jobs and tax revenues.
- Mandate state universities cannot increase tuition above inflation rates. This reduces the need to borrow and frees up more cash for spending. Spending raises tax revenue.
- Keep Praying!
IT CAN BE DONE – We Last Balanced the Budget in 2001
Bill Clinton left the fiscal year with a budget surplus for two years during his presidency — first in 1998 and finally in 2001. He left office with an economy booming. Give him a call!
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I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
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I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
