How much interest is accrued on the US national debt?

in #economics24 days ago

For context, this is a question I answered on Quora

The U.S. spent over a trillion servicing the national debt last year more than every category of discretionary spending including the defense appropriations.

That’s $1.2 trillion that can’t go to anything else except paying creditors what they are owed. That is far quicker than we were expected to spend over a trillion on interest payments prior to the pandemic. Prior to the pandemic the U.S. wasn’t expected to spend over $1 trillion on interest payments until 2030.

As Debt Rises, Interest Costs Could Top $1 Trillion

While the U.S. cannot go bankrupt like a household, business or local government it can and has made it’s currency less valuable relative to the value of essentials such as housing, education and medical care and interest payments have crowded out spending on those items in the congressional budget.