Is the USA on the way to Bankruptcy?
In the 1960’s two respected economists took opposing stances regarding the annual budget and the National debt. Milton Friedman, the conservative view, was that the Government should work on an annual balanced budget and make every effort to reduce the National Debt. John Maynard Keynes, the liberal view, was that annual deficits were ok in years that required economic stimulus, and in years when the economy was overstimulated, a surplus should be achieved. He warned that if the ratio of Debt to GDP ever exceeded 75%, the country’s financial viability would be in danger. At the time, the ratio was under 40%, so danger was not in the cards.
Both economists would be horrified if they were still living. The 75% warning level was reached about 16 years ago; the National debt has almost doubled and is projected to reach $40 trillion by the end of 2026.
Here’s a summary of the U.S. national debt at the end of each fiscal year from 2008 to 2026, based on Treasury data and historical records
Debt GDP in Trillions Ratio
| Year 2026 (though June) | $39,311,022,730,162 | $31,866 | 123.37% |
| 2025 | $37,637,553,494,936 | $30,486 | 123.46% |
| 2024 | $33,510,833,601,230 | $27,063 | 123.83% |
| 2023 | $32,320,860,659,268 | $26,530 | 121.83% |
| 2022 | $30,928,911,613,307 | $25,663 | 120.52% |
| 2021 | $28,428,918,570,049 | $23,173 | 122.68% |
| 2020 | $26,945,391,194,615 | $21,158 | 127.36% Part COVID related |
| 2019 | $22,719,401,753,434 | $21,526 | 105.55% |
| 2018 | $21,516,058,183,180 | $20,659 | 104.15% |
| 2017 | $20,244,900,016,054 | $19,495 | 103.85% |
| 2016 | $19,573,444,713,937 | $18,651 | 104.95% |
| 2015 | $18,150,617,666,484 | $18,035 | 100.65% |
| 2014 | $17,824,071,380,734 | $17,535 | 101.65% |
| 2013 | $16,738,183,526,697 | $16,858 | 99.30% |
| 2012 | $16,066,241,407,386 | $15,776 | 101.85% |
| 2011 | $14,790,340,328,557 | $15,199 | 97.32% |
| 2010 | $13,561,623,030,892 | $14,730 | 92.07% |
| 2009 | $11,909,829,003,512 | $14,302 | 83.28% |
| 2008 | $10,024,724,896,912 | $14,429 | 69.48% |
Out of control; see the following link:
U.S. National Debt by Year (1940–2025) — Historical Data & Download | US-Debt-Clock.com
To keep up with the details, I recommend checking in with this link periodically: https://www.usdebtclock.org/
In the details, one interesting component of the budget that has about doubled in the last 10 years is interest. It is the 3rd largest budget item (after Social Security and Medicare/Medicaid) at almost $1.04 trillion.
