99 Financial Facts Most Investors Don't Know : #7. On January 1, 1791, the U.S. national debt was $75 million. As of 2021, the official debt of the United States government was approximately $28 trillion. To pay this debt would require approximately $85,000 from every person living in the United States, and about $225,000 per taxpayer.

According to Wikipedia, there are two components of gross national debt in the USA:

1. "Debt held by the public" – such as Treasury securities held by investors outside the federal government, including those held by individuals, corporations, the Federal Reserve, and foreign, state and local governments.

2. "Debt held by government accounts" or "'intragovernmental debt"  – is non-marketable Treasury securities held in accounts of programs administered by the federal government, such as the Social Security Trust Fund.  Debt held by government accounts represents the cumulative surpluses, including interest earnings, of various government programs that have been invested in Treasury securities.

The financial trajectory of the United States reveals a staggering evolution in its national debt, surging from a modest $75 million at the dawn of 1791 to a formidable $28 trillion by 2021. This exponential increase in debt not only underscores the changing economic landscape but also the growing responsibilities and challenges facing the U.S. government over the centuries.

Back in 1791, the nascent U.S. economy, under the stewardship of Alexander Hamilton, the first Secretary of the Treasury, viewed this debt as a unifying force, binding the states together and giving them a common interest in the new federal government. The debt accumulated during the American Revolutionary War was considered manageable and necessary for the country’s establishment and growth.

Fast forward to the 21st century, and the context of this debt has dramatically transformed. By 2021, the national debt had ballooned to about $28 trillion, reflecting not just historical spending patterns but also recent significant outlays like those for the economic relief measures during the COVID-19 pandemic. This mounting debt equates to an approximate burden of $85,000 per resident and about $225,000 per taxpayer in the U.S., highlighting the profound fiscal implications for current and future generations.

This juxtaposition of historical and modern figures isn't just a tale of numbers but a reflection of the country's evolving economic priorities, challenges, and responses to various crises. The shift from millions to trillions in debt invites a broader discussion on fiscal responsibility, economic sustainability, and policy-making that aligns with long-term national interests.

Understanding the historical context of the U.S. national debt helps illuminate the complex interplay between economic policy and national growth. As the country navigates this fiscal landscape, the decisions made today will invariably shape the economic realities of tomorrow.

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