U.S. National Debt by Year

The U.S. national debt grew to a record $34 trillion by the end of 2023, and it ballooned to nearly $35 trillion by the middle of 2024. It's grown over time due to recessions, defense spending, and other programs that added to the debt. The U.S. national debt is so high that it's greater than the annual economic output of the entire country, which is measured as the gross domestic product (GDP).

This chart of the national debt by year shows the figure's astonishing growth—from just $16 billion in 1930.

How to Look at the National Debt by Year

It's best to look at a country's national debt in context. Expansionary fiscal policy, such as spending and tax cuts, is often used to spur the economy back to health during a recession. It can reduce the debt if it boosts enough growth. A growing economy produces more tax revenues to pay back the debt.

The theory of supply-side economics says the growth from tax cuts is enough to replace the tax revenue lost if the tax rate is above 50% of income. The cuts worsen the national debt without boosting growth enough to replace lost revenue if tax rates are lower.

The U.S. increases military spending during national threats. The U.S. debt grew after the Sept. 11, 2001 attacks as the country increased military spending to launch the War on Terror. These efforts cost $6.4 trillion, including increases to the Department of Defense and the Veterans Administration, between fiscal years 2001 and 2020.

The national debt by year should be compared to the size of the economy as measured by the gross domestic product (GDP). That gives you the debt-to-GDP ratio. This ratio is important because investors worry about default when it's greater than 77%. That's the tipping point, according to the World Bank.

The World Bank found that it slowed economic growth if the debt-to-GDP ratio exceeded 77% for an extended period. Every percentage point of debt above this level costs the country 0.017 percentage points in economic growth.

Debt by Year Compared to Nominal GDP and Events

The national debt is compared to GDP and influential events since 1929 in this table. The debt and GDP are given as of the end of the fourth quarter of each year unless otherwise noted. This coincides with the end of the fiscal year. That's the best way to accurately determine how spending in each fiscal year contributes to the debt and compare it to economic growth.

Debt and GDP are given at the end of the second quarter from 1947 through 1976 because the fiscal year ended on June 30 during that time. Debt is reported at the end of the second quarter for the years 1929 through 1946. GDP is reported annually because quarterly figures aren't available.

The national debt was about $34.8 trillion at the end of the second quarter of 2024. The debt-to-GDP ratio was about 122% in the first quarter of 2024.

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