Why The U.S. Won’t Pay Down Its Debt

The U.S. national debt is nearly $33 trillion as of early September 2023. Every year since 2001, the U.S. government has spent more money than it takes in, which means it has to borrow money to make up for the difference. The national debt is frequently discussed as a danger to future generations, but some economists say there’s no reason to get the national debt down to zero. One reason for that is without the debt, there would be no federal government securities, such as Treasury bonds, which provide investors a safe place to park their money while accruing interest. Most economist warn, however, that there’s a balancing act when it comes to the national debt. Watch the video above to learn more about why the U.S. can’t get a handle on the national debt and whether it even has to. Correction on Sept. 11, 2023 at timecode 0:11: The voice over misstated the amount the national debt grew from July to September 2023. It was $300 billion dollars. Chapters: 00:00 — Introduction 01:39 — The role of debt in the economy 03:28 — How debt can harm the economy 06:17 — The global economy Produced by: Charlotte Morabito Edited by: Amy Marino Animation: Jason Reginato Supervising Producer: Lindsey Jacobson