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Your Share Is Now $111,000

On October 23, 2025, the U.S. national debt crossed a line it had never crossed before. The Treasury Department reported the total at $38,019,813,354,700.26.

That number landed during a 43-day federal government shutdown, the longest in American history, while hundreds of thousands of workers went without paychecks.

The debt had been $37 trillion just 71 days earlier.

To understand how the country got here, you have to go back to the very first Treasury Secretary and a gamble he made in 1790.

Every American Now Owes Six Figures

The $38 trillion figure amounts to roughly $111,000 of debt for every person in the U.S. Per household, the number climbs to $288,101.

To put that in perspective, this debt equals the combined value of the economies of China, India, Japan, Germany, and the United Kingdom.

The average American household earns about $75,000 a year, which means the government has borrowed nearly four years of the typical family’s income on their behalf.

And unlike a mortgage, there is no house at the end of it.

The Debt Grew $1 Trillion in 71 Days

The jump from $37 trillion to $38 trillion marks the fastest accumulation of a trillion dollars in debt outside of the COVID-19 pandemic.

Over the past year, the debt increased by $2.18 trillion, averaging $5. 97 billion per day, $248.91 million per hour, or $60,140 per second.

The government hit $34 trillion in January 2024, $35 trillion in July 2024, $36 trillion in November 2024, and $37 trillion in August 2025.

At that pace, $39 trillion could arrive by spring 2026.

Interest Payments Now Cost More Than Defense

In fiscal year 2024, for the first time, the United States spent more on interest payments to service the national debt than on the military.

The Pentagon budget was $826 billion, while net interest on the public debt rose to $950 billion. Interest is now the second largest line item in the federal budget, behind only Social Security.

Interest payments cost the U.S. about $4 trillion over the last decade, and projections show $14 trillion in the next ten years.

All Three Credit Agencies Downgraded America

On May 16, 2025, Moody’s downgraded the U.S.credit rating from its highest rating of Aaa to Aa1.

With this move, all three major credit rating agencies have now downgraded the United States from their highest rating: Standard & Poor’s did so in 2011, Fitch followed in 2023, and now Moody’s in 2025.

Moody’s had rated U.S. debt as essentially risk-free since it first issued a rating in 1917, maintaining that top rating through the Great Depression, World War II, and the 2008 recession.

The Debt Milestone Arrived Mid-Shutdown

The 2025 government shutdown lasted from October 1 to November 12, making it the longest in U.S. history at 43 days.

More than $382 billion of debt was added in the first 23 days of the shutdown alone, translating to an average rate of increase of $192,200 per second.

By the time appropriations were passed, nearly 3 million paychecks had been withheld from federal civilian employees, representing almost $14 billion in missing wages.

Alexander Hamilton Started the Borrowing

The U.S. has carried debt since its inception.

Debts incurred during the American Revolutionary War amounted to $75 million, primarily borrowed from domestic investors and the French Government.

Treasury Secretary Alexander Hamilton argued that a national debt, if not excessive, would be a national blessing.

He convinced Congress to assume all state war debts, establishing the federal government’s credit. By February 1792, interest-bearing government bonds were selling for $1.20 on the dollar.

Andrew Jackson Paid It All Off Once

On January 1, 1835, President Andrew Jackson achieved his goal of entirely paying off the United States’ national debt.

It was the only time in U.S. history that the national debt stood at zero. Jackson paid it down through tariff revenues, carefully managing federal funding, and the sale of public lands.

Jackson had a personal aversion to debt stemming from a land deal that had gone sour for him in his days as a speculator.

He called the debt a moral failing and black magic.

Debt Freedom Lasted Exactly One Year

Jackson’s triumph precipitated one of the worst financial crises in American history.

The selling-off of federal lands had led to a real estate bubble, and the destruction of the national bank led to reckless spending and borrowing.

When the U.S. suffered a banking panic in 1837, the economy slipped into a severe depression that lasted until 1844.

The U.S. has been in debt ever since.

What This Means for Your Wallet

Rising government debt can lead to higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services.

Over time, rising debt hurts consumers by driving up inflation and eroding purchasing power.

Research indicates that every 1 percentage point increase in debt as a share of GDP raises long-run interest rates, and each $1 increase in the federal deficit crowds out about 33 cents of private investment.

The Political Blame Game Continues

Both parties point fingers at the other.

The national debt rose by $7.8 trillion during Trump’s first four years as president and $6.8 trillion during Biden’s first three years and four months.

The blame falls more or less equally on administrations of both parties borrowing to finance wars, tax cuts, spending programs, and stimulus measures during recessions.

America’s debt has grown rapidly over the last decade as the population ages and enrollment in Social Security and Medicare rises.

The Debt Clock Keeps Spinning

Assuming the average daily rate of growth over the past three years continues, the U.S. will reach $39 trillion by approximately March 2026.

Annual budget deficits are expected to rise to about $2.6 trillion in 2035, with total deficits over the next decade adding $22. 7 trillion to the national debt.

Andrew Jackson proved you can pay off the debt.

He also proved what happens when you do. The country has been borrowing ever since, and right now, the bill for every American just crossed six figures.

This article was created with AI assistance and human editing.

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