Digital Auto Care Factbook 2019 - 3

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

30%
25%
20%
15%
10%
5%
0%

25.1%
18.7%

2.6%

13.9%

9.4%

5.0%

1902

1998
Federal

2018

State/Local

Sources: Computed with data from the Joint Economic Committee Report (1999), U.S. Statistical Abstract and the
Bureau of Economic Analysis (2018) and Heritage Foundation (2018)

History of the U.S. National Debt Outstanding
$25,000

April 2018
$21.16 Trillion

$20,000

$15,000

Public
Debt:
$14.89
Trillion

$10,000

$5,000

Private
Debt:
$6.27
Trillion

1776
1784
1792
1800
1808
1816
1824
1832
1840
1847
1855
1863
1871
1879
1887
1895
1903
1911
1919
1927
1935
1943
1951
1959
1967
1975
1983
1991
1999
2007
2015

The U.S. national debt as of April 2018 was 21.16 trillion dollars
or roughly 105.5 percent of U.S. GDP in nominal dollars (see
chart). In 2018, roughly 18 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 474 billion dollars in 2017 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 39 percent today.

Government Expenditures as a Percentage of
GDP

Billions

The European "Financial Crisis" continued to improve in 2017
with most of the EU remaining out of recession. The Chinese
economy slowed in 2017 to 6.6 percent GDP growth while
Japan grew at 1.7 percent and the European Union grew to
2.4 percent. 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 2017 but is still burdened
by countries like Greece and Italy, which have national debts
greater than 125 percent of GDP, respectively. The European
Union continues to favor 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 2018 and the great debate of
how to handle Great Britain and the Brexit vote continues.
European GDP growth in 2018 is expected to slow with GDP
growth estimated to be 2.1 percent for the year.

Source: U.S. Department of the Treasury (2018)

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.

Financing the U.S. National Debt - 2018 Data
Interest

Debt

Average Interest Rates (As of June 30, 2017)
Marketable

2.05%

Non-marketable

3.24%

Total

2.41%

Gross Interest Payments of Treasury Debt
Securities (in billions)
Fiscal Year 2018 Estimate

$ 512

Actual 2017

$ 474

Projected Net Interest Outlays (in billions)
Actual 2018

$ 297

Projected for 2015-2019

$ 3,227

Projected for 2017-2024

$ 5,521

Net Interest as a Percent of GDP
Actual 2017

1.39%

Projected for 2015-2019

2.2%

Projected for 2015-2024

3.0%

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

72.1%

Projected for 2018

73.6%

Projected for 2025

81.5%

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 (2018)

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