US & World Economies US Economy Fiscal Policy US National Debt by Year By Kimberly Amadeo Updated on January 18, 2023 Reviewed by Robert C. Kelly Reviewed by Robert C. Kelly Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of experience as a business executive. He is a professor of economics and has raised more than $4.5 billion in investment capital. learn about our financial review board Fact checked by Emily Ernsberger In This Article View All In This Article How To Look at the National Debt by Year Debt by Year, Compared to Nominal GDP and Events Frequently Asked Questions (FAQs) Photo: lechatnoir / Getty Images Key Takeaways The U.S. national debt was more than $31.42 trillion in December 2022. The debt-to-GDP ratio gives insight into whether the U.S. has the ability to cover all of its debt. Recessions, defense budget growth, and tax cuts have all caused the national debt-to-GDP ratio to rise to record levels. The U.S. cannot afford to default on its debt without major global economic consequences. The U.S. national debt grew to a record $31.42 trillion in by the end of 2022. It has 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). How To Look at the National Debt by Year It's best to look at a country's national debt in context. During a recession, expansionary fiscal policy, such as spending and tax cuts, is often used to spur the economy back to health. If it boosts growth enough, it can reduce the debt. 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. When tax rates are lower, the cuts worsen the national debt without boosting growth enough to replace lost revenue. Note Major events, like wars and pandemics, can increase the national debt. During national threats, the U.S. increases military spending. For example, the U.S. debt grew after the September 11, 2001, attacks as the country increased military spending to launch the War on Terror. Between fiscal years 2001 and 2020, those efforts cost $6.4 trillion, including increases to the Department of Defense and the Veterans Administration. 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. That ratio is important because investors worry about default when the debt-to-GDP ratio is greater than 77%—that's the tipping point according to the World Bank. The World Bank found that if the debt-to-GDP ratio exceeded 77% for an extended period, it slowed economic growth. Every percentage point of debt above this level costs the country 0.017 percentage points in economic growth. You can also use the debt-to-GDP ratio to compare the national debt to other countries. It gives you an idea of how likely the country is to pay back its debt. Debt by Year, Compared to Nominal GDP and Events In the table below, the national debt is compared to GDP and influential events since 1929. The debt and GDP are given as of the end of the fourth quarter (unless otherwise noted) in each year to coincide 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. From 1947-1976, debt and GDP are given at the end of the second quarter since, during that time, the fiscal year ended on June 30. For years 1929 through 1946, debt is reported at the end of the second quarter, while GDP is reported annually, since quarterly figures are not available. Note At the end of the second quarter in 2022, the national debt was about $30.6 trillion. Based on the second-quarter GDP of $24.9 trillion, the debt-to-GDP ratio was about 123%. End of Fiscal Year Debt (in billions, rounded) Debt-to-GDP Ratio Major Events by Presidential Term 1929 $17 16% Market crash 1930 $16 17% Smoot-Hawley reduced trade 1931 $17 22% Dust Bowl drought raged 1932 $20 34% Hoover raised taxes 1933 $23 40% New Deal increased GDP and debt 1934 $27 40% 1935 $29 39% Social Security 1936 $34 40% Tax hikes renewed depression 1937 $36 39% Third New Deal 1938 $37 42% Dust Bowl ended 1939 $40 51% Depression ended 1940 $43 49% FDR increased spending and raised taxes 1941 $49 44% U.S. entered WWII 1942 $72 48% Defense tripled 1943 $137 70% 1944 $201 91% Bretton Woods 1945 $259 114% WWII ended 1946 $269 119% Truman's 1st term budgets and recession 1947 $258 103% Cold War 1948 $252 92% Recession 1949 $253 93% Recession 1950 $257 86% Korean War boosted growth and debt 1951 $255 74% 1952 $259 71% 1953 $266 68% Recession when war ended 1954 $271 69% Eisenhower's budgets and Recession 1955 $274 64% 1956 $273 61% 1957 $271 57% Recession 1958 $276 58% Eisenhower's 2nd term and recession 1959 $285 55% Fed raised rates 1960 $286 54% Recession 1961 $289 52% Bay of Pigs 1962 $298 50% JFK budgets and Cuban missile crisis 1963 $306 48% U.S. aids Vietnam, JFK killed 1964 $312 46% LBJ's budgets and war on poverty 1965 $317 43% U.S. entered Vietnam War 1966 $320 40% 1967 $326 40% 1968 $348 39% 1969 $354 36% Nixon took office 1970 $371 35% Recession 1971 $398 35% Wage-price controls 1972 $427 34% Stagflation 1973 $458 33% Nixon ended gold standard and OPEC oil embargo 1974 $475 31% Watergate and budget process created 1975 $533 32% Vietnam War ended 1976 $620 33% Stagflation 1977 $699 34% Stagflation 1978 $772 33% Carter budgets and recession 1979 $827 32% 1980 $908 32% Volcker raised fed rate to 20% 1981 $998 31% Reagan tax cut 1982 $1,142 34% Reagan increased spending 1983 $1,377 37% Jobless rate 10.8% 1984 $1,572 38% Increased defense spending 1985 $1,823 41% 1986 $2,125 46% Reagan lowered taxes 1987 $2,350 48% Market crash 1988 $2,602 50% Fed raised rates 1989 $2,857 51% S&L Crisis 1990 $3,233 54% First Iraq War 1991 $3,665 58% Recession 1992 $4,065 61% 1993 $4,411 63% Omnibus Budget Act 1994 $4,693 64% Clinton budgets 1995 $4,974 64% 1996 $5,225 64% Welfare reform 1997 $5,413 63% 1998 $5,526 60% LTCM crisis and recession 1999 $5,656 58% Glass-Steagall repealed 2000 $5,674 55% Budget surplus 2001 $5,807 55% 9/11 attacks and EGTRRA 2002 $6,228 57% War on Terror 2003 $6,783 59% JGTRRA and Iraq War 2004 $7,379 60% Iraq War 2005 $7,933 61% Bankruptcy Act and Hurricane Katrina. 2006 $8,507 61% Bernanke chaired Fed 2007 $9,008 62% Bank crisis 2008 $10,025 68% Bank bailout and QE 2009 $11,910 82% Bailout cost $250B ARRA added $242B 2010 $13,562 90% ARRA added $400B, payroll tax holiday ended, Obama Tax cuts, ACA, Simpson-Bowles 2011 $14,790 95% Debt crisis, recession and tax cuts reduced revenue 2012 $16,066 99% Fiscal cliff 2013 $16,738 99% Sequester, government shutdown 2014 $17,824 101% QE ended, debt ceiling crisis 2015 $18,151 100% Oil prices fell 2016 $19,573 105% Brexit 2017 $20,245 104% Congress raised the debt ceiling 2018 $21,516 105% Trump tax cuts 2019 $22,719 107% Trade wars 2020 $27,748 129% COVID-19 and 2020 recession 2021 $29,617 124% COVID-19 and American Rescue Plan Act 2022 $30,824 123% Inflation Reduction Act and student loan forgiveness Frequently Asked Questions (FAQs) Who owns the national debt? The public holds the largest portion of the national debt. This includes individuals, corporations, Federal Reserve banks, state and local governments, and foreign governments. A smaller portion of the national debt, known as "intragovernmental debt," is owned by other federal agencies. How is the national debt calculated? The national debt is the total of all outstanding government liabilities owed to the public or intragovernmental agencies. It includes Treasury bills, notes, and bonds, as well as Treasury inflation-protected securities (TIPS), government account series, and more. When did the national debt start? The U.S. has carried a debt ever since its founding in 1776. The country borrowed money to fund the war effort during the American Revolution. Updated by Hilarey Gould Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. U.S. Department of the Treasury. “The Debt to the Penny.” Bureau of Economic Analysis. "National Data: National Income and Product Accounts: Table 1.1.5 Gross Domestic Product." Watson Institute for International & Public Affairs. "United States Budgetary Costs and Obligations of Post-9/11 Wars Through FY2020: $6.4 Trillion," Page 3. World Bank Group. "Finding the Tipping Point - When Sovereign Debt Turns Bad." U.S. Treasury. "Historical Debt Outstanding." Office of Management and Budget and Federal Reserve Bank of St. Louis via Federal Reserve Economic Data (FRED). "Gross Federal Debt as Percent of Gross Domestic Product." Bureau of Economic Analysis. "Gross Domestic Product (Third Estimate), Corporate Profits (Revised Estimate), and GDP by Industry, Third Quarter 2021." United States Treasury. "Debt to the Penny." TreasuryDirect. 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