Digital Auto Care Factbook 2018 - 3

National Debt (Historical)
European Finances Improve, Brexit Presents Problems, China Slows and the
U.S. National Debt Grows

This summary was prepared by Dr. Timothy G. Nash, Senior
Vice President and Director of the McNair Center for the
Advancement of Free Enterprise and Entrepreneurship at
Northwood University.

25.0%

25%
18.7%

20%

13.8%

15%
9.4%

10%
5%

2.6%

5.0%

1902

1998
Federal

2017

State/Local

Sources: Computed with data from the Joint Economic Committee Report (1999), U.S. Statistical Abstract and the
Bureau of Economic Analysis (2017) and Heritage Foundation (2017)

History of the U.S. National Debt Outstanding
April 2017

$20,000

$19.89
Trillion

Private
Debt:
$5.89
Trillion

$15,000

$10,000

2006

1999

1992

1985

1978

1971

1964

1957

1950

1943

1936

1929

1922

1915

1908

1901

1894

1887

1880

1873

1866

1859

1852

1845

1839

1832

1811

1825

1818

1804

1797

1790

1783

$5,000

2013
2017

Public
Debt:
$14.00
Trillion

1776

The U.S. national debt as of April 2017 was 19.89 trillion dollars
or roughly 105 percent of U.S. GDP in nominal dollars (see
chart). In 2017, roughly 17 percent of U.S. federal spending will
come from either borrowing or inflationary dollars created by the
U.S. Federal Reserve Bank. The U.S. government spent more
than 358 billion dollars in 2016 just to pay the gross interest cost
of funding our national debt. It is also troubling that government
spending at all levels in the United States has gone from less
than 8 percent of GDP in 1900 to just under 39 percent today.

Government Expenditures as a Percentage of
30%
GDP

Billions

The European "Financial Crisis" continued to improve in 2016
with most of the EU remaining out of recession. The German
economy experienced overall slow growth in 2016, while
China slowed to 6.7 percent growth and Japan, again in
2016, remained barely positive relative to GDP growth. Aside
from minor sources of revenue like oil and mineral rights from
government lands, over 96 percent of western governments
derive the dollars they spend annually from taxation, borrowing,
and or inflation. The European debt crisis continued to improve
in 2016, but is still burdened by countries like Greece and Italy,
which have national debts greater than 125 percent of GDP,
respectively. This, coupled with a slow German economy (1.9%
GDP growth), is making it difficult for the EU to rebound and
have strong long-term economic growth. The European Union
seems to be favoring a more expansionary monetary policy
as a solution to stimulate economic growth. However, the real
threat to the European economy moving forward is that the
implementation of necessary spending cuts is leaving many
to believe that tax increases on the wealthy and businesses
are needed. If implemented, tax increases will ensure slow
economic growth in Europe in 2017 and the great debate of
how to handle Great Britain and the Brexit vote begins.

Source: U.S. Department of the Treasury (2017)

Financing the U.S. National Debt - 2016 Data
Interest

Debt

Average Interest Rates (As of June 30, 2016)
Marketable

2.03%

Non-marketable

3.24%

Total

2.40%

Gross Interest Payments of Treasury Debt
Securities (in billions)
Fiscal Year 2016 to Date

$ 358

Actual 2015

$ 416

Projected Net Interest Outlays (in billions)
Actual 2017

$ 270

Projected for 2015-2019

$ 3,007

Projected for 2017-2024

$ 4,821

Net Interest as a Percent of GDP
Actual 2016

1.4%

Projected for 2015-2019

2.1%

Projected for 2015-2024

2.6%

Debt Held by the Public As a Percentage of GDP
Actual 2013

72.1%

Projected for 2018

72.6%

Projected for 2025

79.3%

Interest-Bearing Debt Held by Private Investors
(As of March, 2016)
Falling Due Within 1 Year

32.3%

Falling Due Within 5 Years

74.5%

Falling Due Within 10 Years

91.6%

Holders of the Public Debt
(At End of 2013 Fiscal Year)
Domestic Investors

42.6%

Foreign Investors

57.4%

Sources: Compiled from Congressional Budget Office and
U.S. Department of the Treasury (2016)

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