Short · Money
Why does the national debt snowball?
The US pays over $1 trillion a year in interest, more than its military. Taxes $5.4T; interest is paid first, $1.1T; programs need $6.3T, so the $2T shortfall is borrowed onto the pile, which charges interest on itself. Raise rates two points and interest is nearly $4T by 2036.
Opens Debt Snowball. Change the same thing yourself.
Transcript
The United States now pays over a trillion dollars a year in interest. More than its entire military. Why does the debt snowball? Each year, taxes bring in five point four trillion. Interest comes off the top: one point one trillion to the lenders, leaving four point three. Programs need six point three trillion. The two trillion gap is borrowed, and added to the pile. The pile charges interest, so next year's first slice is bigger. Now raise the interest rate by two points. By twenty thirty-six, interest is nearly four trillion: almost half of all taxes. Turn the rate yourself at Explainer Tools dot com.
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Learn more about the national debt
Interest is paid first, and the pile charges interest on itself. The guide explains the two engines, what the real numbers are, and where this model stops.
- Topic guideWhy does the national debt snowball?Why interest comes first, the fiscal 2026 figures, the rate against growth, and what a country can do that a company cannot.
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