America's $38 Trillion Debt Crisis — It's Spiraling Out of Control

The US national debt has surged past $38 trillion, with the government overspending by $1.78 trillion in fiscal year 2025, primarily due to spending on Social Security, healthcare, and rapidly increasing interest payments on the growing debt.

• US national debt has exceeded $38 trillion, with a $1.78 trillion deficit in fiscal year 2025.

• Government spending of $7 trillion far outpaced $5.2 trillion in tax collections, with interest payments now exceeding national defense spending.

• Politicians avoid cutting major programs like Social Security and healthcare to retain voter support, leading to continued overspending and inflationary pressure.

The US government's national debt has exceeded $38 trillion, adding $1 trillion in just two and a half months, driven by consistent overspending. In fiscal year 2025, the deficit reached $1.78 trillion as government expenditures of $7 trillion far outpaced $5.2 trillion in tax collections. Major expenses include Social Security, healthcare, and interest payments, with interest on the debt now exceeding national defense spending, posing a significant challenge to balancing the budget without cutting essential programs.

The $38 Trillion Debt

• 00:00:00 The US federal government's debt has surpassed $38 trillion, increasing by $1 trillion in just two and a half months. In fiscal year 2025, the government recorded a deficit of $1.78 trillion, meaning it spent more money than it collected in revenue. While this deficit is slightly lower than the previous year's $1.83 trillion, it highlights a persistent pattern of government overspending.

Government Revenue & Spending

• 00:02:22 In fiscal year 2025, the US government collected $5.23 trillion in taxes but spent $7 trillion, resulting in the $1.78 trillion deficit that must be borrowed. Personal income taxes account for the largest share of revenue at $2.65 trillion, followed by FICA taxes (Social Security and Medicare) which are paid by employees and self-employed individuals. Corporate income taxes and customs duties represent significantly smaller portions of total government revenue.

Ballooning Interest Payments

• 00:03:51 Interest payments on the national debt have become a major expenditure, reaching $970 billion in fiscal year 2025, which is more than the $917 billion spent on national defense. This cost is substantial, consuming 18.5% of all government collections. Lowering interest rates by the Federal Reserve might reduce future borrowing costs but will not eliminate the existing large interest burden on the massive $38 trillion debt, and excessively low rates risk spiking inflation.

Political & Economic Dilemma

• 00:04:49 Balancing the budget presents an insurmountable political dilemma, as cutting major expenses like Social Security ($1.5 trillion) or income security programs ($702 billion) would impact millions of voters and essential services. Defaulting on interest payments would crash the dollar and accelerate its loss of reserve currency status. Politicians continue to overspend to avoid upsetting voters, opting instead to print more money, which disproportionately hurts the middle and lower classes through inflation, a pattern consistent across different administrations regardless of political party.