Editing Economy of the United States (section)

==Financial position==

{{Main|Financial position of the United States}}
[[File:US Federal Debt Held By Public as of Feb. 2023.png|thumb|upright=1.2|The amount of [[National debt of the United States|U.S. public debt]], measured as a percentage of GDP, held by the public since 1900]]
The [[U.S. public debt]] was $909{{spaces}}billion in 1980, an amount equal to 33% of America's gross domestic product (GDP); by 1990, that number had more than tripled to $3.2{{spaces}}trillion{{snd}}56% of GDP.<ref>[https://web.archive.org/web/20100201131532/http://www.whitehouse.gov/omb/budget/fy2010/assets/hist.pdf FY 2010 Budget Historical Tables. pp. 127–28].</ref> In 2001 the national debt was $5.7{{spaces}}trillion; however, the [[debt-to-GDP ratio]] remained at 1990 levels.<ref>"[https://web.archive.org/web/20070214085759/http://www.timesonline.co.uk/tol/news/world/us_and_americas/article742188.ece US spends its way to 28 Eiffel towers: made out of pure gold]". ''The Times''. March 17, 2006.</ref> Debt levels rose quickly in the following decade, and on January 28, 2010, the U.S. debt ceiling was raised to $14.3{{spaces}}trillion.<ref>"[https://www.reuters.com/article/idUSTRE60R5DK20100128?type=politicsNews Senate backs increase in debt limit to $14.3{{spaces}}trillion]". Reuters. January 28, 2010.</ref> Based on the 2010 [[United States federal budget]], total national debt will grow to nearly 100% of GDP, versus a level of approximately 80% in early 2009.<ref>{{cite web|url=http://www.gpoaccess.gov/usbudget/fy10/pdf/summary.pdf|archive-url=https://web.archive.org/web/20111010084418/http://www.gpoaccess.gov/usbudget/fy10/pdf/summary.pdf|archive-date=October 10, 2011 |title=2010 Budget-Summary Tables S-13 and S-14 |access-date=July 21, 2014}}</ref> The White House estimates that the government's tab for servicing the debt will exceed $700{{spaces}}billion a year in 2019,<ref>"[https://archive.today/20120802190722/http://www.abc.net.au/news/stories/2009/12/15/2771641.htm?site=thedrum Debt has become America's life blood]". Abc.net.au. December 15, 2009.</ref> up from $202{{spaces}}billion in 2009.<ref>"[https://www.nytimes.com/2009/11/23/business/23rates.html?_r=1 Wave of Debt Payments Facing US Government]". ''The New York Times''. November 22, 2009.</ref>

U.S. household and non-profit net worth exceeded $100{{spaces}}trillion for the first time in Q1 2018; it has been setting records since Q4 2012.<ref>{{cite web| url = https://fred.stlouisfed.org/series/TNWBSHNO| title = FRED – Household and Non-Profit Net Worth| date = October 1945}}</ref> The U.S. federal government or "national debt" was $21.1{{spaces}}trillion in May 2018, just over 100% GDP.<ref>{{cite web| url = https://www.treasurydirect.gov/govt/reports/pd/mspd/mspd.htm| title = Treasury Direct – Monthly Statement of the Public Debt| access-date = June 19, 2018| archive-date = February 13, 2020| archive-url = https://web.archive.org/web/20200213153409/https://www.treasurydirect.gov/govt/reports/pd/mspd/mspd.htm| url-status = dead}}</ref> Using a subset of the national debt called "debt held by the public", U.S. debt was approximately 77% GDP in 2017. By this measure, the U.S. ranked 43rd highest among 2017 nations.<ref>{{cite web| url = https://www.cia.gov/the-world-factbook/countries/united-states/| title = CIA World Factbook – USA| date = February 16, 2022}}</ref> Debt held by the public rose considerably as a result of the [[Great Recession]] and its aftermath. It is expected to continue rising as the country ages towards 100% GDP by 2028.<ref>{{cite web| url = https://www.cbo.gov/publication/53651| title = CBO. Budget & Economic Outlook 2018–2028| date = April 9, 2018}}</ref> In February 2024, the total federal government debt grew to $34.4 trillion after having grown by approximately $1 trillion in both of two separate 100-day periods since the previous June.<ref>{{cite news|last=Fox|first=Michelle|date=March 1, 2024|title=The U.S. national debt is rising by $1 trillion about every 100 days|publisher=CNBC|url=https://www.cnbc.com/2024/03/01/the-us-national-debt-is-rising-by-1-trillion-about-every-100-days.html}}</ref>

The U.S. Treasury statistics indicate that, at the end of 2006, non-US citizens and institutions held 44% of federal debt held by the public.<ref>"[http://www.gpoaccess.gov/usbudget/fy08/pdf/spec.pdf Analytical Perspectives of the FY 2008 Budget] {{webarchive|url=https://web.archive.org/web/20100107153657/http://www.gpoaccess.gov//usbudget/fy08/pdf/spec.pdf |date=January 7, 2010}}".</ref> {{As of|2014}}, China, holding $1.26{{spaces}}trillion in [[treasury bond]]s, is the largest foreign financier of the U.S. public debt.<ref>{{cite web|url=http://www.treasury.gov/ticdata/Publish/mfh.txt|title=Major Foreign Holders of Treasury Securities|date=July 2014|publisher=United States Department of the Treasury|access-date=August 23, 2014|url-status=dead|archive-url=https://web.archive.org/web/20151017031710/http://www.treasury.gov/ticdata/Publish/mfh.txt|archive-date=October 17, 2015}}</ref>

The overall financial position of the United States as of 2014 includes $269.6{{spaces}}trillion of assets owned by households, businesses, and governments within its borders, representing more than 15.7 times the annual gross domestic product of the United States. Debts owed during this same period amounted to $145.8{{spaces}}trillion, about 8.5 times the annual gross domestic product.<ref name="2014Q1flowoffunds">
{{cite web
 |url = http://www.federalreserve.gov/releases/z1/current/z1.pdf
 |title = Z.1 Financial Accounts of the United States – Flow of Funds, Balance Sheets, and Integrated Macroeconomic Accounts – First Quarter 2014
 |author = Federal Reserve
 |date = June 5, 2014
 |access-date = July 3, 2010
|archive-url = https://web.archive.org/web/20100702134328/http://www.federalreserve.gov/releases/Z1/current/z1.pdf
 |archive-date = July 2, 2010
|url-status = dead
 |df = mdy-all
|author-link = Federal Reserve
}}</ref><ref name="2005to2013flowoffunds">
{{cite web
 |url = http://www.federalreserve.gov/releases/z1/current/annuals/a2005-2013.pdf
 |title = Z.1 Financial Accounts of the United States – Flow of Funds, Balance Sheets, and Integrated Macroeconomic Accounts – Historical Annual Tables 2005–2013
 |author = Federal Reserve
 |date = June 5, 2014
 |url-status = dead
 |archive-url = https://web.archive.org/web/20140813015931/http://www.federalreserve.gov/releases/z1/Current/annuals/a2005-2013.pdf
 |archive-date = August 13, 2014
|df = mdy-all
|author-link = Federal Reserve
}}</ref>

Since 2010, the U.S. Treasury has been obtaining [[negative real interest rate]]s on government debt.<ref>Saint Louis Federal Reserve (2012) [http://research.stlouisfed.org/fred2/series/DFII5 "5-Year Treasury Inflation-Indexed Security, Constant Maturity"] FRED Economic Data chart from government debt auctions (the x-axis at y=0 represents the inflation rate over the life of the security)</ref> Such low rates, outpaced by the [[inflation]] rate, occur when the market believes that there are no alternatives with sufficiently low risk, or when popular institutional investments such as insurance companies, [[pension]]s, or bond, money market, and balanced [[mutual fund]]s are required or choose to invest sufficiently large sums in Treasury securities to hedge against risk.<ref name="liquidation" /><ref>David Wessel (August 8, 2012) [https://www.wsj.com/articles/SB10000872396390444900304577577192417116440 "When Interest Rates Turn Upside Down"] ''The Wall Street Journal'' ([http://www.htisec.com/en/research/shownews.jsp?newsType=DJ&newsid=c-20120808DN019794 full text] {{webarchive|url=https://web.archive.org/web/20130120020448/http://www.htisec.com/en/research/shownews.jsp?newsType=DJ&newsid=c-20120808DN019794 |date=January 20, 2013}})</ref> American economist [[Lawrence Summers]] argues that at such low rates, government debt borrowing saves taxpayer money, and improves creditworthiness.<ref>Lawrence Summers (June 3, 2012) [https://web.archive.org/web/20120605042224/http://blogs.reuters.com/lawrencesummers/2012/06/03/breaking-the-negative-feedback-loop/ "Breaking the negative feedback loop"] ''Reuters''</ref>

In the late 1940s through the early 1970s, the US and UK both reduced their debt burden by about 30% to 40% of GDP per decade by taking advantage of negative real interest rates, but there is no guarantee that government debt rates will continue to stay so low.<ref name="liquidation">Carmen M. Reinhart and M. Belen Sbrancia (March 2011) [http://www.imf.org/external/np/seminars/eng/2011/res2/pdf/crbs.pdf "The Liquidation of Government Debt"] National Bureau of Economic Research working paper No. 16893</ref><ref>William H. Gross (May 2, 2011) [http://www.pimco.com/EN/insights/pages/the-caine-mutiny-part-2.aspx "The Caine Mutiny (Part 2)"] {{Webarchive|url=https://web.archive.org/web/20121013181717/http://www.pimco.com/EN/Insights/Pages/The-Caine-Mutiny-Part-2.aspx |date=October 13, 2012 }} ''PIMCO Investment Outlook''</ref> In January 2012, the U.S. Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association unanimously recommended that government debt be allowed to auction even lower, at negative absolute interest rates.<ref>U.S. Treasury (January 31, 2012) [http://www.treasury.gov/press-center/press-releases/Pages/tg1404.aspx "Minutes of the Meeting of the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association"]</ref>