America’s debt has climbed to nearly $37 trillion and continues to rise. Understanding why the debt is so high and what it means for the economy is the first step toward making informed policy choices.
According to the Peter G. Peterson Foundation’s debt clock, the national debt was roughly $36.99 trillion at the start of August 2025. That translates to more than $108,000 for every person in America. The clock ticks upward constantly as the government borrows to cover ongoing deficits.
Several forces have pushed debt higher. First and foremost, the federal government has consistently spent more than it collects in revenue. Demographic shifts—especially the ageing of the population—and rising healthcare costs increase outlays for Social Security and Medicare. At the same time, the tax base has not kept pace with spending, leading to a persistent mismatch.
The Peterson Foundation notes that revenue from the federal gas tax hasn’t been raised since 1993, despite inflation; meanwhile, income tax brackets have been cut several times. The combination of slower revenue growth and mandatory spending pressures means the debt is projected to keep climbing absent reform.
Borrowing has costs beyond the headline number. The federal government spends about $2.6 billion every day servicing the debt. That interest burden consumes a growing share of the budget and crowds out other priorities such as education, infrastructure and research.
In a June 2025 survey, 79% of American voters agreed that lawmakers should work together to address the national debt. Addressing it will likely require a combination of spending restraint, tax reform and economic growth. Without action, rising interest payments could limit future policy choices and saddle younger generations with a growing financial burden.
Peter G. Peterson Foundation, The National Debt Clock; “What’s Driving the National Debt?”.
The national debt grows every second. Watch it tick upward below (simulation):
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