Money Explained: Understanding Debt and the Economy

What is Money in Terms of Debt?

Debt is something one party owes another, typically money. Companies and individuals often take on debt to make large purchases they could not afford without it. Debt can be secured or unsecured, with a fixed end date or revolving. Consumers can borrow money through loans or lines of credit, including credit cards.

USA National Debt and GDP

As of 2024, the U.S. national debt totaled $34.64 trillion. This debt represents the sum of past annual budget deficits. As of December 2023, total federal debt was $33.1 trillion; $26.5 trillion held by the public and $12.1 trillion in intragovernmental debt.

On the other hand, the Gross Domestic Product (GDP) of the United States was worth $25,439.70 billion in 2022. The GDP value of the United States represents 10.93 percent of the world economy.

Understanding the relationship between money, debt, and the economy is crucial for making informed financial decisions. As we continue to navigate the complexities of the financial world, it’s important to keep these concepts in mind.