How much is our National Debt Service? Stated another way, how much is the interest on the United States’ National Debt?
In the fiscal year ended September 30, 2009, the interest on the national debt was $383 billion, making Interest Expense one of the largest components of the federal budget. In fact, interest on the national debt accounted for over 27% of our 2009 federal budget deficit. That’s a lot of “National Debt Service”, but it could have been much worse.
Current low interest rates are keeping our national debt service numbers from being astronomical, but this will change in future years for two reasons.
Reason # 1 – Our national debt is growing at an uncontrollable pace, and as it continues to grow, our National Debt Service will also grow uncontrollably.
Reason # 2 – As the economy recovers, interest rates are going to increase. And as interest rates increase, so will our National Debt Service.
If current trends continue, then we are just a few short years away from interest expense being the largest component of the federal budget….larger than defense, larger than Social Security, and larger than Medicare. We simply can’t allow the majority of our federal budget to be devoted to national debt service.
If you are sick and tired of the uncontrolled growth in our national debt, please let your Congressman and Senators know how you feel.
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