The History of US National Debt (By President + By Year)

By:

 Eric Sepanek

Eric Sepanek

SBC Founder

Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.

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Consultants Corner

June 20, 2025

Published

Consultants Corner

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Following decades of unchecked federal spending and failed political promises, Americans have been conditioned to accept astronomical national debt as a permanent fixture of the US government.

Yet, even a cursory glance into the past obliterates this newfangled myth. The current scale of national debt is an exception, not a rule.

The federal government has accumulated roughly 88% of its debt over the past six administrations alone. This indicates the staggering debt problem is the result of political complacency and feckless fiscal policies rather than an unprecedented rise in legitimate expenses or skyrocketing inflation.

A look back at the history of US national debt by president and year can shed light on the severity of the issue and how it developed.

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Understanding Debt vs Deficit

The terms debt and deficit are often used interchangeably when discussing the US national debt, despite a clear distinction. National debt is the total amount of money the federal government owes to creditors due to borrowing.

Alternatively, a budget deficit occurs when the government spends more money than it generates. It’s calculated by simply subtracting total liabilities from net income over a defined period, such as a fiscal year or presidential term.

Budget deficits are incremental building blocks of the national debt, resulting in a cumulative burden.

The last time the US operated with a balanced budget was in 2001, when President Bill Clinton achieved a surplus of $128 billion. That marked the fourth year in a row the federal government had landed in the green.

In sharp contrast, the 2024 federal deficit reached $1.8 trillion, and the 2025 projection stands at $1.9 trillion, suggesting the problem of overspending is only getting worse.

Source: US Dept of the Treasury

Source: US Dept of the Treasury

The Role of Congress in National Debt

Debt accumulation is often solely attributed to presidents, but Congress holds the power of the purse. The legislative branch is equally culpable as the POTUS since the executive branch cannot spend money without Congressional approval.

Since 1960, our state representatives have raised the debt ceiling 78 times (49 under Republican presidents and 29 under Democratic ones), even in the face of an exponential debt crisis. The Bush and Obama administrations account for 18 of those debt ceiling increases, further underscoring the bipartisan nature of this financial disaster.

👉Related Read: What Happens if the US Defaults On Its Debt?

What factors lead to federal debt?

Wars

The financial demand of wars has always weighed heavily on the national debt from the Revolutionary War through consecutive World Wars up to the War on Terror. In the unpredictable fog of war, the government is forced to borrow to secure US interests and protect the homeland. This extends to US support for foreign conflicts, too.

Inflation

As inflation erodes the purchasing power of the dollar, the government is forced to spend more for the same goods and services. Without a commensurate increase in income or a serious cut in spending, this is followed by increased borrowing. Ironically, this ceaseless borrowing and spending contribute to inflation, creating a self-defeating cycle.

Interest Payments

The national debt not only reflects the principal; it includes the interest owed on top of the initial borrowed sum. The more money that’s borrowed and the longer it remains unserviced, the higher the interest payments.

This compounding effect leads to an increasing amount of US expenditure going towards managing the debt instead of paying it off, further hampering the effort to pay it down. In 2024, the interest owed on debt soared over $1 trillion, eclipsing defense spending.

Recessions

Spending is the standard government strategy for combating an economy in recession. The thought process is that a serious injection of funds into the economy can artificially stimulate recovery.

Typically, this counter-cyclical spending necessitates a surge in federal borrowing to fund bold, expansive programs. This was seen during the Great Depression, the Great Recession, and the COVID-19 pandemic.

Entitlement Programs

Social Security, Medicare, Medicaid, and other government assistance programs comprise a growing chunk of the federal deficit. In 2024, these expenses comprised roughly 50% of government expenditure.

Due to an aging population and the inflated costs of healthcare, the relative burden of these programs weighs more heavily on the debt year by year. Currently, Americans across the political aisle strongly oppose cuts to these programs, leaving politicians little room for action.

Where is debt headed in the future?

The Congressional Budget Office (CBO), a nonpartisan organization tasked with budget analysis for the legislative branch, paints a grim picture of the US debt. At its current pace, the federal government would balloon the national debt to $52 trillion by 2035. The group also projects that Trump’s domestic agenda could increase debt to 200% of GDP, almost twice the level reached at the height of World War II.

Are your investments safe?

The impact of US Debt and its equally egregious pace of accumulation isn’t just putting the government in a bind. It’s threatening the savings, investments, and nest eggs of everyday Americans.

In response, broad swathes of investors are divesting from traditional assets in favor of physical precious metals. These tangible assets, such as gold and silver, boast inherent value, inflation-hedge properties, and enhanced security.

Smart investors are insuring their investments by diversifying with precious metals before mounting debt takes a toll on their wealth. If you’re interested in learning more about how you can diversify and protect your wealth with gold and silver, download our FREE Precious Metals Investment Guide.